Mortgage question from Ohio - Posted by TB

Posted by Michael Morrongiello American Note on June 17, 1999 at 23:34:49:

You didn’t mention whether your home that you want to place (deed) into the corporation was owned free & Clear of any debt or do you still owe on it?

Let’s assume it is Free & Clear. If that is the case there are many Hard Money or Equity only oriented lenders that will lend you money against the real estate collateral. You may not like the rate & terms but then again they will be lending you the funds when other may not.

If you can invest those funds and earn a greater rate of return by having access to those funds, then it works out for everyone. As you track record becomes proven, they will typically get more flexible with you on the terms.

Also NOTE: These same HARD MONEY Lenders will lend you funds to acquire properties as well and use the property you wish to buy as the collateral.

Michael Morrongiello
Operations Manager

Mortgage question from Ohio - Posted by TB

Posted by TB on June 17, 1999 at 13:49:41:

I formed a new corporation recently. One problem; All the mortgage companies that I called-just today- told me that I could not transfer my house into the corporation’s name, by title nor by quit-claim and get money out for investing in rental properties. I was told that I had to be established for 12 months in the corporation’s name before the corporation can get cash out. Why do I want to place my residence in my corporation’s name: a) credit is not that great b) fresh start using corporation to buy and invest in real estate. Property value in Youngstown-where I live-also, is not that great-mine about 20k. Yet, my idea is to pick-up all the old properties that other investors are turning away from. It appears that no mortgage company will lend my corporation any money until I’ve been established for one year. Any ideas, suggestions, or possible remedies would greatly be appreciated.