I have a rental, with a mortgage

I would like to sell it to my son on a Land contract.

Should I set this up as an LLC first, under a different name?


I can I sell it to him for $1000.00, he takes over the payments?

Would he qualify for the new tax credit that is out there for new first time buyers?

Could he keep it rented out as well?

Would I also need a quick claim deed?

He does not have good credit.

Thanks

Hello k:

You're going to need the services of a real estate attorney...

If you do it WRONG, the bank will call in your loan.

excon

First no, since he has not "bought" the house no tax credit, no transfer of deed, the house is not actually bought till the transfer on a contract for deed.

You could in theroy, sell it to the LLC on a contract for deed, which would then sell it to him on a contract for deed. But since he could not hold you liable personally if you refused latter to do the deed, it would not be a legally smart thing for the buyer to do.

You need to just sell it to him on a contract for deed personally, or have the LLC get a new mortgage to buy the property.

The issue of a LLC for a sale between family is a large red flag of some issue