All Forum Posts by: Patrick Philip

 Do you think it would cause any problems to use a Quit Claim Deed?

I am wondering what's the best type of deed to use to sell a vacant lot I have from my LLC to my personal name. I am going to build a house on it with cash and live in it. I will probably sell it after 2-3 years.

Should I use a Warranty Deed or a Quit Claim Deed? I don't want to get title insurance if I can avoid it because I know I own it. I don't need it to get a building loan because I'm building with cash.

I thought a Warranty Deed would be better so nobody in the future has any questions about chain of ownership. But I don't want to do this if it's not 100% necessary because then the title company will force me to purchase a new title insurance policy.

 I can't rely on friends/family for millions of dollars per year. So this isn't an option. 

perhaps I can find accredited investors that don't want equity?

I'm desperately searching for a financing option for my spec homes that will give me better terms than the 10-12% interest plus $10k closing costs that my current HML is giving me.

I tried doing buyer-financed, but they haven't been selling very well (although I really haven't waited long, I'm just impatient). Also, I think it will be difficult to not have the buyers try to turn me into a custom home builder if they're securing the loan. That's something I really want to avoid. 

None of the traditional mortgage lenders I've talked to so far are willing to do this, as it's more of a commercial loan. 

Any ideas where I could look? Investment banks?

I would like to start a wetlands mitigation bank. I would also consider buying an existing bank with credits already approved. In my area, I've found only one company that seems to deal with this regularly, but they don't respond to emails very quickly. Any advice where to look?

I'm a home builder. I've been building by financing through HML. I want to try a new strategy of having the buyer finance the construction with a construction-to-permanent financing.

I have several questions...

1. Are the sales contract and construction contract completely separate? Or do I need to find one contract that covers both?

2. How/ when are the agent commissions paid out?

3. As the owner of the land and the builder, would I be able to include all my expected profits with the cost of the land and then build "at cost?" Basically to get all my profits up front and then build "for free." Even if I can't put "building at cost" in the contract, I could just put the building cost estimate to include no profits for myself because I will have added them to the land price.

 Building and selling a personal residence isn't a capital gain? Are you sure? 

In fact, if I lived in it for 2 of 5 years as primary residence, then I can write off first $250,000 of Capital gains I thought. (I would have to look up those numbers to see if their exactly correct, but something like that).

If it were under my personal name, then it would be considered personal use and not business related and thus not SE taxed. Or so I would think.

 In case you're wondering why I want to do this it's because I want to show actual income on my tax return (for purposes of qualifying for future loans) rather than a personal Capital Gain.

I am a small spec home builder. I build under 3-10 houses per year. My bank will lend me to my personal name enough money to build a large spec home at a much lower interest rate than my HML. I want to know what would happen if I built the house, then transferred it (along with the mortgage) to my LLC name and then sold it. I asked my bank if they would care and they flat out told me they have no rules for how long I have to own it. So despite the fact this seems dishonest at the surface, I don't believe it's breaking any rules.