DSCR Lenders Vesting in a Living Trust

[Mike W.]

I'm looking for DSCR lenders that will allow us to hold the title of a 2-4 unit property in the name of our living trust. I've talked to several lenders and they either want the title to be held in my individual name or an LLC (not related to the living trust).

In the event we get hit by a bus, I want to avoid probate and ensure that the property is managed and distributed according to the terms of our trust. I've had colleagues who's family named real estate in their trust, but because the deed didn't have the trust's name on it, there was time and costs associated with having a judge review the trust and verify that the intent was to have the property in the trust. I don't want my kids to have to deal with that time XX properties. 

If you have any recommendations for DSCR lenders licensed in MO who will let us vest with a living trust, please pass them along.

[Devin Peterson]

Quote from @Mike W.:

I'm looking for DSCR lenders that will allow us to hold the title of a 2-4 unit property in the name of our living trust. I've talked to several lenders and they either want the title to be held in my individual name or an LLC (not related to the living trust).

In the event we get hit by a bus, I want to avoid probate and ensure that the property is managed and distributed according to the terms of our trust. I've had colleagues who's family named real estate in their trust, but because the deed didn't have the trust's name on it, there was time and costs associated with having a judge review the trust and verify that the intent was to have the property in the trust. I don't want my kids to have to deal with that time XX properties. 

If you have any recommendations for DSCR lenders licensed in MO who will let us vest with a living trust, please pass them along.

Hi Mike, one would have to vest the LLC into the trust and you are secured that way. Happy to help hash this out more!

[Rick H.]

Short answer: no.

I’ve made a career from lending to estates and trusts in California (only) and you may need to go the private money route to obtain a fiduciary mortgage.

If you have financing available for property held by LLC, your estate planning attorney may advise you to hold member share(s) in trust.