[WSBARP] Loan Secured by Investment Real Estate-LLC v Trust
John J. Sullivan
sullaw at comcast.net
Tue Feb 22 10:34:46 PST 2022
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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