All Forum Posts by: David Johns

@Andre Postell 

@Andrew Postellundefined 

I can't thank you enough for the quick reply. I would like to to just verify you are referring to this method, correct? 

 Seems a little out of order, believe why maybe people had follow up questions.

1.You create an LLC

Ok created.

2. You buy a home

Ok. I buy it using money from the LLC. Does it need to come from LLC checking at this point, will proof of funds ever need to be verified? At closing I’m guessing I will need all the paperwork ready (the note in specific)?

3. Your LLC gives you a loan for the home

Ok. I created a note. Then I go to closing agent with the note. which will proceed to….

4. You file the deed for that loan at the county courthouse.

Ok, closing agent will record the deed along with note at closing. 

5. You use the money from the LLC to buy and fix up the property

Ok done in previous step.

6. Once the property is completed, your conventional lender comes to refinance the loan

No 6 months waiting period at this point, correct? I've created a custom no interest loan to myself. 

Your conventional lender runs title and sees there is a loan.

Ok.

Your conventional lender refinances you into a new loan, and cuts a check to your LLCâ¦a check in the amount of 75% of the value.

Ok.

Looking to make sense of idea of selling a home to myself . Currently have home closing all-cash but have had difficulty finding financing afterwards.

Wanted to know if anyone has insights, experience, and or ideas of the concept of selling a home to yourself. Home is being purchased and placed under LLC, which I own but I would like to then get it under a mortgage. So thought, why not sell it to myself for the appraised value. This of course is not too different from Fannie Mae cash delayed financing, but the benefit is most banks in local area are not too familiar with cash delayed financing.

In addition, Delayed Financing cash-out is limited to the amount you payed for the property. With regular financing you can purchase property for the appraised value and typically at a better rate.

Thoughts on the idea?