I’ve read many posts on quitclaims and land trusts in regards to transferring a property to my LLC (which I’m considering only because of the difficulty in finding a lender with good terms willing to finance a property in the name of the LLC).
Does anyone know specifics about this in Illinois? I have a call out to my lawyer who has yet to get back to me. I’ve even read where some states require only a small fee and minor paperwork to get it done. This sounds too simple, but if it’s true, would work for me.
Also, if anyone has suggestions on how to get financing for a newly formed LLC, I would appreciate that as well.
Illinois is where land trusts were created. It’s a simple process to place your property into a land trust and assign the beneficial interest to your LLC. Good luck.
tell your lender that you want to finance your next property to the llc with a personal guarantee. some lenders are willing to do this. keep looking until you find one.
Thanks for your responses. If I find a lender willing to allow transfer to my LLC, what is involved? Is it just extra paperwork at the closing? Or is there more involved?
I know this isn’t the “Financing” board, but it doesn’t sound like anoyone thinks I can find financing with relatively good terms for the LLC.
In any case, I have to find financing asap, our offer has been accepted and earnest money paid :-\
once you find a lender who will, a mortgage is a mortgage. email me offline – I have a TX lender who will do a refi into an LLC who might be able to help you.
I am in Illinois also. I have my first deal on the table. I have a “C” corp and an LLC (both are just a month old). What is the first step to take. I have bad credit. I have a board member who has good credit. I have a woman willing to deed here house over to me for $5000 for moving money. She is 1 month behind on her mortgage. The house is worth 100k and 50k is still owed on it. What steps can I take to get a refi done along with the deed. The house needs 15k in repairs. Do I take ownership in a land trust and refinance or quit claim deed. Please help. Can you refi on a purchase?
How firm are your repair costs? How firm is your $100k valuation? Do you have reliable comps? If they’re on target, this could be a nice deal.
If you have $5k, take the house on a wrap NOW. Make a payment, then you have time to figure out the financing. The point here is DONT LET A GOOD DEAL GET AWAY because you don’t know exactly what to do. If she’s reluctant, let her know that you’re going to help her, you know that she needs a quick solution, and the quickest way you can help her is to do a wrap, satisfy the mortgage co and then work out the final financing later. It’s not every day that someone offers you 50,000 later for 5,000 today. But be sure to have your “outs” in the contract, just in case.
I’m not a banker, but I would think that any lender would do a 65% LTV even with bad credit. (Having a board member with good credit is useless unless he is going to do the mortgage himself). Even at a less than perfect rate, this could be profitable.
You may find a lender who will finance into the LLC, but probably not with your credit issues. But don’t despair: work with what you have. We’ll clean it up after the fact.
You could look for a buyer “as is” and immediately resell it to a rehabber and maybe make a quick $5 or $10 profit.