[WSBARP] Loan Secured by Investment Real Estate-LLC v Trust

[John J. Sullivan]

Find a lender who will loan to the LLC. An RLT makes the bank happy because it provides no protection from liability. There’s no Garn-St. Germain exemption that helps here, unless someone dies and it goes into an irrevocable trust. 

John J. Sullivan

Sent from my iPad

> On Feb 22, 2022, at 10:02 AM, Robert West <rwest at westlawoffices.com> wrote:
> 
> 
> Listmates –
>  
> Client wants to purchase investment property using a LLC for asset protection.  Lender will not loan to LLC, but will loan to client’s trust.  I am curious how some of you structure such a transaction and avoid a “due on sale” risk, if it is not exempt under Garn St.-Germain, by transferring ownership to the LLC after the loan funds, regardless whether a trust is even used in the purchase transaction.
>  
> Robert E. West, Jr. 
> WEST LAW OFFICES, P.S.
> Attorneys at Law
> 332 1st Street NE 
> Auburn  WA  98002 
> Telephone:  253-351-9000 
> Facsimile:    253-833-5322
> E-mail:  rwest at westlawoffices.com
> Website:  www.WestLawOffices.com  
> 
>  
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