Can I buy real estate and sell it to my own corporation at market via simultaneous closing?

Question

Thank you so much. Do you know of any GOOD real estate attorneys in ME?

Answer 1

Yes, I suppose you can do that, but I don't see the sense in doing so. If you buy it and resell it to your corporation, you will probably incur double closing costs for the dual transactions.

It would seem to make more sense to have your corporation purchase the property directly, without yourself as some sort of middleman.

Answer 2

Not for a profit....you won't get a bank to finance that transaction unless your "corporation" is paying cash.

That is what banks call a property "flip" and that is a NEGATIVE term in the lending industry when no improvements are being made.

Banks require 90 days to 6 months seasoning, and will want to see evidence and receipts of construction improvements, and the comps must support the appraised value.

This is also a very common scam where investors will buy property and then keep selling it back and forth among each other....that is why if the current seller has owned the property for less than 12 months, the loan underwriter will condition for a 24-month chain-of-title...that is when these scams are revealed and stopped.

Answer 3

You can very easily, but you probably want to make sure that you do not have a loan on the property when you purchase it. If you do, the lender probably has a "Due on Transfer" clause on the loan - meaning that if you transfer ownership of the property, they can call the loan due immediately. They don't always do that, but it's their right.

Answer 4

yes.