[kathkrle]

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

[excon]

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

[Fr_Chuck]

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