Issues with buying in Corp or LLC

[Mario Dattilo]

Is anyone having issues with BOA and Wells because you are taking title in your corporation or llc? Bank of america countered with something like "because the buyer is an LLC we are countering with 154k" and told my negotiator that they are doing it because they are seeing too many investors buying fixing and flipping and making a profit. Talk about haters. If they didnt suck at what they do then it wouldnt be happening. Wells said they wouldnt sell it to me in my S-corp and i could choose to submit a new contract in my personal name. Both said this within a week. My negotiator was pretty suprised and he said he has heard this more lately with the bigger lenders. anybody have the same issue? any ideas?

I thought about buying in personal name and then deeding it to my company but on some deals we are using a line of credit and its in the company name.

M.

[James Ward]

Mario,

Everytime Wells sends us something about a Buyer being a corp., we sent in the corp. Docs to show that this transaction will be a Arm's length transaction.

We do not currently conduct any business with BofA, but we have handled them the same way as above.

When push comes to shove, no Lender will discriminate. If any Lender presses the issue, request for the Lender to send in document form a directive that states that a Buyer can not be a corp., esspecially in a contract where they are not a party.

As for buying in a personal name, I personally would NEVER do it. It does not follow my business plan, and would go against our company articles.


Hope this helps!