Deeding property to Corp. question - Posted by Miguel (CA)
Posted by Miguel (CA) on February 26, 2002 at 01:45:34:
I’m getting a loan on this very nice 3/2 but my lender won’t lend to my corporation yet (not two years old). He tells me to just get the loan in my name and then deed it to my corporation after the fact. No problem.
My question to everyone: what’s the best way to do this?
This deal is being done at a title company and I guess I’ll just tell them to treat this like a double close, where I’ll be “selling” the place instantly to the corporation. Do I need a purchase contract? Is this simply an S-2 deal, with the corp buying subject to my loan? If so, what about the 10% down I put on the property? If the corp doesn’t have enough cash to pay me the 10%(42K)now, do I just create a note for this amount?
Or should I just exchange the property for shares in the corp?
Oh, and I don’t care about any Due on Sale clause since I plan to flip the place right away.
Thanks in advance for all responses.