[Jeff Bowman]

Jeff Bowman

I found a property to purchase at a great price and will require only a little bit of rehab. I have to move quickly and fortunately, I have the cash to do both purchase and rehab but was wanting to use the strategy of having the seller deed into the trust and then assign me (my LLC) the beneficial interest.

I’m reluctant to tie up that much cash in one house so would like to do a refi as soon as practicable and get my cash back out. However, be they banks or private lenders, I can’t find anyone with enough experience to understand trusts! Even the portfolio lenders I’ve approached insist that I take the LLC out of the land trust in order to get the loan

I can see scenarios of pledging the beneficial interest but lenders remain reluctant when I pitch them on it since I feel like they don’t understand it.

Any suggestions on how to overcome the objections of lenders? I’m young enough in my career that it doesn’t really matter if I close in the land trust or not but the advantages are clear of doing so from the get-go. I can always deed it into a trust later.

Thanks,
Jeff

[Jackie Lange]

Jackie Lange

HI Jeff

It would be much better to negotiate to buy this property with seller financing or to work with a private lender INSTEAD of institutional bank financing. Most private lenders are well versed in land trusts and beneficial interest. With private lenders, the terms could be much more flexible than you would ever get with a bank.

We have a lot of training at CashFlowDepot about finding and working with private lenders.

[DON WEDE]

DON WEDE

I agree with Jackie. Think it has been close to 15 years since my last bank financing. I still used land trust way back then. The bank just made me sign personally on the loans they stayed in the trust. Find a private lender like Jackie suggested.

[Jeff Bowman]

Jeff Bowman

Thanks for the advice, Don and Jackie. I tried to do SF on the deal but they need cash. A private lender is a good option to have in the back pocket but I need to find people looking for that style of investment. All in all, it’s a good problem to have since I’m getting hold of a property for a good price. I’ll let you know how it shakes out. JB

[DON WEDE]

DON WEDE

Jeff
What marketplace are you in?

[Jeff Bowman]

Jeff Bowman

Atlanta

[DON WEDE]

DON WEDE

Jeff,
Tons of private investors in Atlanta. One easy way is a Craigs list campaign. Yea I know sounds hokey. That is what I thought 15 months ago. I have had tremendous success with it. Go to the FSBO section. Check out some of the ads people post to attract investors. Be creative and unique. Post 2 times daily 9am 5pm or at least daily. Many little tricks to learn but works well. Investor carrot has extensive training along with ads for I think $100. Well worth it.

[Jeff Bowman]

Jeff Bowman

Phenomenal advice, Don. Thanks so much for sharing the personal experience using it. Not only does this once again justify using CFD but points out the investment on IC is well worth it as well. Best, JB