CH A P T E R 6
in place for their company, if that’s the way they want it. If they want to put it in a trust, then the trust should be set up in advance. Sometimes there are restrictions on how you can take title, which is another thing that would show up in the declaration. “The next thing they have to understand is, are they going to pay cash, or are they going to get fi nancing? If they pay cash, then they can usually take title however they want. If they’re going to get fi nancing, it’s a little trickier because various lenders have various requirements about how you take title. Some lenders will not allow you to take title in a corporation or LLC. They’ll only allow you to take title as an individual or perhaps in a trust.” Jason advises VRP buyers to stay in communication with the title agent ahead of closing. Respond to requests for documents or ID in a timely manner. If you’re going to be in a different state and hope to do the closing remotely, communicating that is very important. It’s helpful if all questions are asked and answered before you get to the closing table. Finally, it’s important that buyers request a full copy package of all of the executed documents at closing. “I know that sounds elementary,” he says, “but I can’t tell you how many times people have to come to me and said, ‘Oh, I didn’t get a copy of my documents.’ Some people assume they’re going to get it, and then they don’t and time passes. The list would be, in order of importance, the deed, the warranty deed, your settlement statement, your title policy, any affidavits that were executed at closing, any agreements that were executed at closing, a copy of your land survey of the property. All of these things are very important to have, for documenting their fi le should they want to do some refi nancing in the future or for when they want to sell.”
6.4 Accountant Alliance Running your VRP business, particularly if you are a Do-ItYourself operator instead of utilizing a third-party Vacation Rental
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