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Updated over 9 years ago on . Most recent reply
- Investor
- Kingston, WA
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Dodd Frank and balloon payments using contract for deed & LLC
According to the article linked below, Individuals and Trusts that seller finance one property or less per year (to an owner occupant) can implement a balloon payment.
I'm in the process of doing a carry back financing of a home in S. Carolina using a Contract For Deed with a balloon due in 3 years. APR is 10% fully amortizing over a 30-year term, owner occupied and the buyer completed a financial statement with me.
Currently I'm planning to sell the property under these terms from my LLC which according the linked article above, would be in conflict with DF. Is this a correct interpretation? If so, could I quitclaim the home into a trust with my llc as the beneficiary and execute the CFD and be in compliance or would I have to quitclaim to myself individually?
Any comments/input is appreciated.
Most Popular Reply
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- Kingston, WA
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Excellent points @Dion DePaoli. On re-thinking this yes I think that using a CFD is probably not the best solution. Also considering that I will most likely want to sell the loan on FCI Exchange at a later date and they will not allow CFD's. So it looks like a normal mortgage and promissory note will be the best solution. Thanks for the common sense advice and getting my head out of the weeds...