Hello all, this is my first post. I would not call myself a newbie, but on certain subjects I am clueless.
In the past I bought all my properties placing the deeds into land trusts.
This was done for many reasons, but the main reason was in order to show a 90 day seasoning of the deed on a flip to an FHA buyer.
My question is this my last rehab flip did not sell and will not sell in this market. The property now has a long term tenant, the underlying financing is an interest only line of credit.
Now that this property is a long term hold, I need permanent financing, which is no problem acquiring.
The lender however wants the property brought out of the trust in order to provide financing. I could go with a commercial loan and this would not be a problem, but a commercial loan has a higher interest rate and only a 7 year term.
I have been offered 5.5% fixed at 15 years by a loan company, but again they want the property out of the trust.
Does anyone know if this will trigger real estate transfer taxes?
I am in Philadelphia, PA the taxes would be 6%, of which I paid before when the trust was originally settled.