Foreclosures Help Information

Foreclosed Rental Property

Question: Is it better to finance a foreclosed rental property as an individual or LLC?

My family and I are going to buy a 2 unit rental property next door to us that has been foreclosed on. I was wondering if we should try to get a commercial loan in one of our names or if we should form a corporation first and do it that way? We would like to eventually make a business out of this.
Thanks in advance

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Answer: The problem you will have if you plan to purchase the home in the name of an LLC is that the LLC does not have any credit, and therefore will have a very difficult time getting a good loan. It is possible for you to be the guarantor for the loan, but why bother when you can just buy it in your name and then Quit Claim it into the LLC later.

It's legal to do it this way, but the lender does have the opportunity to call the note due immediately on their Due on Transfer clause, but most lenders will not excersize this if they're getting paid regularly and on time.

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