How Big A Mistake Did I Make? - Posted by Bob-Tx

Posted by JHyre in Ohio on March 10, 1999 at 11:50:20:

LLC’s members are often a matter of public record, while trusts beneficiaries are usually not. Depends on your state.

How Big A Mistake Did I Make? - Posted by Bob-Tx

Posted by Bob-Tx on March 10, 1999 at 10:20:44:

OK, I went to the convention and NOW I know I screwed this deal up a bit, but how badly and what recourse might I have.

So, I wanted to do my first wrap!! Problem is I contracted it such that I am assuming the original VA loan rather than buying “subject to”

Existing assumption is $64k
FMV is $90k
My plan is to take the deed then sell owner financed at $95k at 11%. The numbers work great but my concern is in assuming the VA loan. How big a deal is this?
Bob

You will be responsible - Posted by Bud Branstetter

Posted by Bud Branstetter on March 10, 1999 at 20:31:30:

Bob,

When you fill out the VA papers they will ask for a tax ID. Use the tax id for the LLC. By having the title company record the title in the name of the land trust you will get some anonimity. The deed of trust will probably cite the note made out by the LLC so you expose the LLC some if they bother to read. As long as you control servicing on the wrap note you would not have a problem. If you did lose control some time in the future the LLC could be open to deficency if something ever did go bad.

Re: How Big A Mistake Did I Make? - Posted by Charles-DFW

Posted by Charles-DFW on March 10, 1999 at 18:18:29:

Is the $90k FMV current condition or after fixup.

Re: How Big A Mistake Did I Make? - Posted by David Alexander

Posted by David Alexander on March 10, 1999 at 10:34:18:

Bob,

Is it a NQ assumable or a qulifying assumable. If it is a NQA no problem, just have your Land Trust assume it.

David Alexander

Re: How Big A Mistake Did I Make? - Posted by ScottE

Posted by ScottE on March 10, 1999 at 10:31:59:

Bob,
More information is needed from you. When was the original VA loan originated? You could tell if it was a non-qualifying assumable by the date.
Is there any cash to the seller or are you just assuming the VA note?
Fix up costs?
All the (pertinent)information you can put up will garner better responses.

Good luck

Scott

Re: How Big A Mistake Did I Make? - Posted by Bob-Tx

Posted by Bob-Tx on March 10, 1999 at 12:06:34:

David -
Hey, I kept meaning to intro myself to you at the convention, just never got around to it.

I planned to take title in the name of my LLC…why would a land trust be better?

Bob

Re: How Big A Mistake Did I Make? - Posted by Bob-Tx

Posted by Bob-Tx on March 10, 1999 at 11:46:08:

David -
Hey, I kept meaning to intro myself to you at the convention, just never got around to it.

I planned to take title in the name of my LLC…why would a land trust be better?

Bob

Re: How Big A Mistake Did I Make? - Posted by Bob-Tx

Posted by Bob-Tx on March 10, 1999 at 11:44:01:

Scott -
original VA loan was in '88 and I am going strictly by the sellers description of the assumability. I have not met this out of state seller.

I have agreed to pay $2k equity plus closing costs plus the VA transfer fee at closing.

I do not intend to rehab the house tho it needs a good bit of work. Plan is to whisk it out and begin marketing “as is…work for down.” Will consider lease option or owner finance.

I appreciate your response.
Bob