Quit Claim Deed Strategy

[Xavier Strong]

BPers,

Here's the run down. A partner and I created a LLC. The partnership was formed for credit purposes, his credit is great and mine is so, so. The plan is for him to purchase a property and Quit Claim it over to the LLC. I understand only the rights and ownership transfer, and the loan stays in his name. We're planning to "buy and hold" and tenents will be making payments to the LLC.

QUESTION: Would these payments benefit the LLC as establishing business credit for future loan in the LLC name?

QUESTION: How often can this process be repeated?

If anyone has used this strategy in this manner please offer insight.

Thanks in advance,

Xavier Strong

[Bill Gulley]

Yes, really!

Suggest you stop devising things.

Have him form an LLC and buy the property. Then he can admit you into the company, you can manage it and assume what ever under the Operating Agreement of an LLC. He can sit and do nothing.

There is nothing in RE that you're going to think of that hasn't been thought of before, there are usually tried and proven, legal methods to accomplish a solution for just about any problem you can face, so ask instead of creating things. It's good you asked!

It's really not nice to deceive or mislead an insured lender, they really don't like that and they have some very big hammers to smash those who think too much and try to mess them over. Good luck :)