Home Buying in 92653>Question Details

Daniel Counts, Home Buyer in Wrightwood, CA

Can a company (s-corp in CA) buy residentialreal estate?

Asked by Daniel Counts, Wrightwood, CA Fri Apr 13, 2012

Has anyone been successful in this venture? I don't know if my company is "major" enough. My company is a 20 million dollar company and has been in business for 15 years. The business wants to purchase a corporate house for around 1 million and can easily afford 10-20% down and a monthly payment at 4-5k which is what it would be given today's interest rates. I want to buy, the company has the wherewithall, where do I turn and who can help? =)

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Yes but you would likely still need to sign a personal guarantee. And it would have to be through a portfolio lender.
1 vote Thank Flag Link Fri Apr 13, 2012
If you are talking about putting down 10 or 20%, your answer might be no, because you are now talking about a loan. 10% will definitely not work, because Fannie Mae and Freddie Mac will not allow corporate title, and you won't get PMI on it either. You will have to use a lender who portfolios their loans who allows for corporate title. The loan-to-value they allow is generally less than 80%.
1 vote Thank Flag Link Fri Apr 13, 2012
Hi Daniel,

As far as title goes, the property can be titled to the S-Corp. The loan may require a personal guarantee of one or all officers that have the credit and assets sufficient to satisfy the lender's criteria.

Please take note that a Real Estate purchase by an S-corp
1.) may not be able to gift property/percentage interests in the property to children or grandchildren
2.) it may trigger more complicated accounting, including a more complicated tax return
3.) it may limit depreciation write offs
4.) there may not be any tax advantages

I am not a tax professional and the above does not constitute tax advice.

I do suggest to seek the advice of a tax professional. Then find a reputable lender and Realtor to assist you. If you need reputable lenders with a impressive track record, please feel free to contact me. Please feel free to call me if you have any additional questions.

Hope this has been helpful!

Louri Groves
Prudential California Realty
Newport Beach
1 vote Thank Flag Link Fri Apr 13, 2012
Hi Daniel, Have you found a solution in financing yet? If not, I have a couple of contacts in this niche commercial transaction for a strong capitalized and long credit company. If you intend to purchase a short sale or an REO (foreclosed property), the banks want to know more details, but the process is smooth after you are financed. I successfully closed many short sales and REOs, I will like to represent you in this process. I work with reputable Surterre Properties, specialized in high end transaction. 949-235-8018 fmasbaum@surterreproperties.com. Best of luck!
0 votes Thank Flag Link Fri Apr 27, 2012
Hello Daniel,

My name is Mitch Valmer. I am Managing Partner of e Money lending & we specialize in two types of transactions, First off is Private Money Lending & Secondly is Investment Banking. 98% of my Clientele is Self Employed business owners just like you Mr. Counts, With 20% Down I can get you a loan with one of my many Investment banks. I have access to these investment banks because either Myself or one of my investors bank there.

Mitch Valmer
Managing Partner
e Money Lending
e Money Fund LLC
e Money Lending is a DBA of Euro-American Credit & Trade, Inc., a
Licensed California Finance Lender.
0 votes Thank Flag Link Fri Apr 13, 2012
Yes technically and S corp is still a singular entity. vesting can suit the buyers needs. As a former Underwriter I have extensive knowledge on how deeds and closings work. My knowledge as both real estate agent and Sr. Underwriter can help you on both sides of the table. Its a matter of proper identification and paperwork that escrow needs. As for the housing, I am currently helping another client in the same situation and his company is not worth $20 million, its less. So it is possible. I would like to help you out.

Lara Gabriele
949 939 4876
Windermere Socal
0 votes Thank Flag Link Fri Apr 13, 2012
Yes they can buy a home, but would have to get some private financing if you are only going to put 10-20% down. You have other options. Call me.

Joe Homs, Realtor
0 votes Thank Flag Link Fri Apr 13, 2012
Find a lender and start the process. I suspect you will have to personally guarantee the loan as you do with anythign you buy or lease in the company name (copiers, cars, etc.)
After you get the loan process in place, find a great local Realtor who can assist in fnding the right place for your needs.

One word of caution, you will likely not be able to buy a short sale in teh name of an S-Corp.

Best of luck,

Thom Colby
Newport Beach / Palm Desert CA
0 votes Thank Flag Link Fri Apr 13, 2012
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