Banks won't lend to Land Trusts anymore?

[Loc R.]

So, I just went into a purchase agreement on a 4-plex. For those of you that have followed my posts, yes, this is the one with the large lady. However, I have run into a new problem.

The issue is that I want to take title in a land trust, and refinance in 6 months so I can pull my rehab capital out, BUT I was told from several lenders that they don't lend to land trusts anymore. One of them even told me "it's OK, you can just grant deed title into your personal name, then grant deed it back into the trust." (Uh, moron, this defeats the whole purpose of having a land trust).

So, I guess it's beginning to look like my only play at this time is to just take title in my LLC, vs. the land trust with my LLC as the beneficiary set-up I originally wanted.

Thoughts/experiences?