Can I buy a house to rent using a corporation, then rent it from the company?
Is it legal to create a business, buy a house using the business, then rent it to myself?
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Tags: Buy A House, Buy House, House Rent
buy property | , 8 Mar 10
By sunshine_today, March 9, 2010 @ 11:52 am
Kenneth Lay, is that you?
By Skip, March 12, 2010 @ 11:46 pm
That is possible, since a corporation is considered a legal entity, you are not in fact renting from yourself you are renting from the corporation.
There are a few things that you must consider. You have to get a non-recourse loan for the corporation to purchase the property. In other words a lender that will allow you to purchase the property directly through the corporation without any personal guarantees from you. Sort of like a co-signer with the corporation.
At times when you do find a lender that will allow a corporation to purchase a property the corporation has to qualify for the loan as an individual would, so you would have to come up with fed taxes for 2 years as well as other financial documents to prove the corporation can pay for the house as well as other debts the corporation might have. It must also prove income so bank statements would be needed. Net worth might also be a problem as to what else does the corporation own.
I hope this will be of some use to you, good luck.
“FIGHT ON”
By 007, March 15, 2010 @ 6:14 am
you must work for Enron?
By Ken_Home_Loan_Coach_4U, March 18, 2010 @ 2:38 pm
First I would ask you why you would like to do this??? You may looking to use your IRA or other assets in trust to diversify your personal assets tax deferred into real estate perhaps?
But I would ask, do you own a primary residence now? If not than don’t bother trying this type of tactic right off the bat. You are missing out on a tax write off simply from the interest payments on your home.
I have helped other customers setup this type of loan in the past, they are tricky to say the least, let me know if you have further questions. My email is listed in my bio.
KK