Updated almost 9 years ago on . Most recent reply
Owner finance deals to an entity instead of an individual
Hi All,
Has anyone ever tried an owner finance deal to a corporation instead of an individual? We have the goal to pick up 12 units next year in our business name and not the personal name and we will have the downpayment for about 8 of those units. We want to try our first creative deal in Columbus as well next year and I'm wondering about this specific part of it. Any advice would be much appreciated!
Rob
- Robert Ellis
Most Popular Reply
Hi Rob. Long time, no text...lol..
Here's the deal on owner financing to a LLC. It can be done, but must have personal guarantee rider on it. Why? Because you form a LLC to avoid liability. Any attorney is going to tell you not to lend to a LLC. There's no one to go after should the loan default. To avoid that, you personally guarantee the loan. That way, you can put the property in the LLC for title purposes (aka: still have the protection against litigation from tenants) but the lender can still come after you personally, should you default.
Good luck!
Tristam Griffith