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Updated over 5 years ago,

User Stats

7
Posts
1
Votes
Jonathan Berridge
  • Contractor
  • White Plains, NY
1
Votes |
7
Posts

HELP! Hit a Block in the road on first purchase set to close fri!

Jonathan Berridge
  • Contractor
  • White Plains, NY
Posted

Hey Guys so we've finally found a property that works for us, put in a offer & got the accepted offer. Since then we've put the home into contract and paid the earnest money to the seller. Ive been dealing with a HML to fund the remaining balance on the property & cover less than half of the renovation costs. We are at the end of the road on this deal and are supposed to be closing this FRIDAY! Anyways, one of the HML requirements was that we formed an LLC as they rather do B2B lending, so we did all that and have received all the documents that the LLC has been formed. This all took place AFTER the contracts and other documents have been drawn up, so the original purchase agreement shows just the buyers names and nothing with the LLC. Our attorney is giving us a hard time about this and made the statement that it "cant" be done. Her reasoning for this was that we haven't completed our publication requirements for NY state. Now I'm no attorney but after doing some quick web searches I cant find anything that states you cant purchase a property in a LLC name before you complete the publication requirements, they give you 120 days to do this and every thing I read says you can do pretty much anything you need the LLC to do as soon as you have all the filing receipts & formation paperwork. So I guess I say all that to say, Can you purchase a property in a NY LLC that has just been formed before completing the publication requirements & can anyone give me some advice on the best way to go about getting these documents changed like ASAP to satisfy the HML's requirement. Lastly, can someone point me in the right direction on a good template to use for a exit strategy? Planning on doing a refi and holding since its a income producing 4-family. Thanks BP!