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Hud Property

Posted on: Wed, 02/29/2012 - 05:38
Hud Property

I wanted to purchase a Hud property in Maryland through an LLC in Virginia of which my wife and I are members. The property for example is $100,000 and I would like to make an offer for $50,000 and is going to sell it for $80k. Now let's say my bid got accepted and it's a few days to closing and I have not found a buyer yet. What do I do? How do we get out of the contract?

Now another solution I was thinking was sell the property to my wife since she is interested to hold and rent the property for herself. Now this will put money to the LLC and my wife will be owning and renting the property on her own. Is this transaction allowed by law?

Can someone help us please...Thanks!

EG

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Posted on: Mon, 03/26/2012 - 03:17 #1
HUD Property

I'm a little confused. Why not just have your wife own part of the LLC in the first place and put the money in the LLC, then if you can't find a buyer, your LLC buys the property and rents it out. You can refinance the property at a later date to free up some money to buy your next deal.


Posted on: Wed, 04/04/2012 - 02:13 #2
LLC member

My wife is a member of the LLC. The company does not have enough capital to purchase the property and was going to reassign the contract at closing to a buyer. Now if we could not sell it then my wife would purchase the property in her name through a loan with a bank thus putting money in the company and my wife owning this property to do whatever she wants with it. Two separate transactions.


Posted on: Wed, 04/04/2012 - 12:10 #3
Consult an accountant

groyon wrote:
My wife is a member of the LLC. The company does not have enough capital to purchase the property and was going to reassign the contract at closing to a buyer. Now if we could not sell it then my wife would purchase the property in her name through a loan with a bank thus putting money in the company and my wife owning this property to do whatever she wants with it. Two separate transactions.

I'm not 100% sure but if your wife does this I believe that will skew the % of ownership in the LLC to her favor. Check with your accountant about this. It might not seem a big deal now but if you ever decide to get divorced, she could end up taking 60% (for example) of the LLCs worth instead of the 50/50 you may have now.
Just a heads up.

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Posted on: Wed, 04/04/2012 - 12:32 #4
LLC loan?

I would also check to see which or if any banks are lending to LLC. In PA, NJ, NY, and CT i have not been able to find a bank to lend to an LLC to buy or refi when it comes to real estate.
Raymond


Posted on: Wed, 04/04/2012 - 12:35 #5
HUD loan?

Also, buying a HUD home for investment the loans that one can qualify change. It's getting tougher and tougher to buy a HUD or foreclosure with a bank loan as an investor. If anyone knows about a bank or mortgage broker that can help in this, please share
Thank you
Raymond