ATT: Bill Bronchick and Others - Posted by JamesL

Posted by William Bronchick on March 18, 2002 at 20:40:38:

Yes and no. A private loan will not show up on your credit report, but if you are personally on the hook for the note, you are obligated to report this on a loan application (1003). If the seller will permit the trust to sign without your personal guarantee, then the answer is “yes”.

ATT: Bill Bronchick and Others - Posted by JamesL

Posted by JamesL on March 17, 2002 at 15:35:13:

Hi everyone!
I am considering purchasing some unimproved prarie land in western Texas using seller financing, and at a substantial discount from market value. It will cost me practically nothing to get into the deal, there are easy terms, no prepayment penalty, low yearly taxes, and the property is deeded to me immediately.
I am very close to purchasing my first SFH and Multi-family properties using conventional financing. I am only in lease options so far.
Here is my question:
If I set up a trust to purchase this land, with myself as the beneficiary, can I (legally) avoid having the monthly payment negatively affecting my debt to income ratio while at the same time using the instant equity in the property (at least $22000) as collateral for my investment loans - or an REI line of credit? ? ? My Beacon is only @ 559(and rising) right now…
This equity advantage would be a very big part of the reason for me to decide to sign the land deal.

Any sound advice and comments are greatly appreciated.


PS> Ed - Do you have a hard money person for me in the state of Ohio? (for seperate deals)