Is It A Problem If My Rental Home Buyer Is A Corporation?
While issuing a private note to a corporation or LLC doesn’t make it impossible to sell a mortgage note, it does do two things. First, it significantly reduces the pool of available mortgage buyers to buy your mortgage note and secondly it will lower the price a note buyer will pay for the note. The lower price is due to more perceived risk. Mortgage buyers just like traditional mortgage lenders like to have individuals responsible for the note rather than some corporation. So if you want to sell to a corporation, you should try to have an individual as an additional guarantor of the note.