Financing a new motor home with a LLC (probably Montana).

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29er

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My wonderful wife and I are facing a situation while looking for the 4.4% financing most dealers offer. When I was growing up it was sort of pounded into my head to buy a home and get it paid off. Well, in today's financial markets, having no debts actually lowers the" infamous score" of your credit rating.
We could easily refinance our over priced Las Vegas home and pay cash for the motor home, but there is something that makes us both uneasy about having a mortgage. Also, outrageous fees and taxes on motor vehicles makes Nevada an undesirable state to be licensed in. Thus, the LLC in another state.
Getting financing with a LLC is proving to be pretty tough for us.
What I'm asking is if other members of this forum have faced this perplexing "reality" ? If so, what did you do and could you offer advice. We will listen!? It could be we can't see the trees because of the forest.
 

Shayne

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If you paid the cash for the unit why would you have to register it in Nevada.  You can still LLC it in Montana.  I don't finance anything I don't have too but if I did  I'd rather make 1 payment than 2 and make it on the house so interest would be tax deductible.  I'm not familiar  enough with financing to know if it is deductible as separate loans or not.    Others will know cause I'm sure they've done it.
 

Jackliz

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29er said:
My wonderful wife and I are facing a situation while looking for the 4.4% financing most dealers offer. When I was growing up it was sort of pounded into my head to buy a home and get it paid off. Well, in today's financial markets, having no debts actually lowers the" infamous score" of your credit rating.
We could easily refinance our over priced Las Vegas home and pay cash for the motor home, but there is something that makes us both uneasy about having a mortgage. Also, outrageous fees and taxes on motor vehicles makes Nevada an undesirable state to be licensed in. Thus, the LLC in another state.
Getting financing with a LLC is proving to be pretty tough for us.
What I'm asking is if other members of this forum have faced this perplexing "reality" ? If so, what did you do and could you offer advice. We will listen!  It could be we can't see the trees because of the forest.

We obtained financing from sources provided by our LLC attorney.  Please check him out.
Bennett Law Office, P.C.
135 W. Main Street
Missoula, MT 59802
(866)543-5803(toll free)
www.bennettlawofficepc.com

Well, in today's financial markets, having no debts actually lowers the" infamous score" of your credit rating.
Hmmm. Well, one's payment history is a factor in determing one's credit rating, also.

Good luck,
Liz Pearce
 

Ray D

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Please forgive this interruption, but I have read about LLC in several threads, and don't know what it is. I looked in the glossary, in the library, and it is probably there but I didn't find it. What is an LLC?

29er: I echo your statement, all of it!

I puttered along for quite a few years, after retirement, with little or no debt. I had reasonably good credit cards with reasonable interest rates, as credit cards go. Didn't want to be in debt at this age. So, I rarely kept a balance. (Less than one month's income.) Mostly, I used my cards as purchase convenience cards, paying them off, every month.

I kept getting offers for cards with outrageous interest rates, to "help me repair my credit rating." I was perplexed by how low it was! Why? Was not interested in "repair!"

After a long search for a MH we would be happy with, I offered a third down, to whet the appetite of the dealer. I insisted that a low interest rate was part of the deal. "Higher rate = deal buster! I'll go somewhere else. Someone wants my money!"

Short story, they met my terms and we have our wonderful rolling house.

After that purchase, I started getting offers for cards with very low interest rates, premium cards. Puzzling. (I'm making double to quadruple payments, every month, to reduce the length of the loan. Probably won't help my "score!")

Punch Line:  Recently, I pulled my "free" credit report, which I do regularly. In less than a year, my "Score" jumped from mid 400s to just below 900! What?

Yep, that's right! Rediculous! Only difference is that I took on substantial debt! I think the banks are nuts! When I wasn't in much debt, my "score" was lousy. Now that I took a plunge, great credit! Go figure!

Someone define LLC for me. Thanks.

Ray D
 

RLSharp

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Ray D said:
What is an LLC?
Punch Line: Recently, I pulled my "free" credit report, which I do regularly. In less than a year, my "Score" jumped from mid 400s to just below 900! What?

LLC = limited liability company or limited liability corporation

What credit report did you get your "Score" from? I just ran across an article yesterday which states that the maximum credit score is 850 and a score of 770 is considered "good." You can read the article at: http://www.smartmoney.com/nowwhat/index.cfm?story=20020826

Richard
 

Ray D

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Should have checked first. It's Trans Union. I remembered 871. The correct score is 821. If you think about a 70 year old man getting a 20 year -  ::)  - mortgage on a quickly depreciating motorhome, you have to have a feeling of disbelief. At least, I have that feeling.

The thought of being 90 when it pays off, is absurd! Making multiple payments, each month, is going to pay it off in 5 or 6 years, and that is plenty long enough. Also, I am trying to outrun the depreciation. Pretty hard to do, but I'm ahead, so far.

Thanks for defining LLC.

Ray D
 

29er

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Ray D.....Did you write your reply or did I ? I'm sure others on this forum are in the same situation as you were and as we are now.
We did find a "middle man" down in Kingman, AZ (about 100 miles south) and he will do the whole thing. He has bank contacts and all the necessary Montana contacts. The bank rates he offered were 6.4% for any note over 100K; ie: $100,001.00.  Less than 100K it's 6.8% and we can stretch it out over however long we want. How does that sound to you?? In any event it was great to read your message and appreciate your honesty. We will attempt to force the issue with a big down payment and get the 4.4% all dealers use as a come-on. (as in, come on in and let me skin you alive).
If this topic doesn't get shut down, I'll write just what we did or didn't do. Thank you very much.
 

Ray D

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I joined this forum 7 or 8 months after buying our motorhome. So, when I did the dirty deed, I was flying blind. I used NADA and E-Bay for assistance in pricing prospective purchases. NADA was high, and E-Bay seemed to be the low, for that purpose. Spent a bunch of hours over many moons!

I am 70, and have been around, but the purchase and taming of a motorhome has to be one of the most sureal experiences I have ever had. Only purchase I ever made for the purpose of watching my money run out of a funnel, under pressure! AND, Loving every minute of it! Proof enough that I have lost my mind! I am in my second childhood, and there is no question about it!

You, on the other hand, seem to me to have the reality and the strategy, pretty well in mind. You started out, here, which is so much better than I did. Good luck with your purchase, and your financing, and loving every minute of your new motorhome - when the dust settles.

Ray D.
 

Shayne

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If my memory serves me correctly I believe Bennett is the gent that 1st inaugerated the LLC in Montana.  All the rules and regulations were 1st setup by him.  Many others such as New Horizons have developed since.  Perhaps they may have even worked for Bennett.  Some states do not recognize the LLC and can cause troubles when entering your home state.  It did for me, however the LLC co did take care of the fees and fines leveed against me.  I pays to have a reputable firm that will stand behind you.
 

29er

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2845 Sorrel Street, Las Vegas, NV 89146
To Liz Pierce and to Shayne. We have been in contact with Bennett and have started the process. Somehow, we have narrowed it down to four coaches and driving tomorrow from Las Vegas to Santa Fe Springs,CA to inspect and test drive their coach (Stier's).

Interestingly enough, they avoid all problems with the LLC by driving it to the state line and conducting the sale and delivery in Primm, NV..... I hope we are not in a "Tangled Web". Thank you both for your help and advice.
 

Jackliz

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29er said:
To Liz Pierce and to Shayne. We have been in contact with Bennett and have started the process. Somehow, we have narrowed it down to four coaches and driving tomorrow from Las Vegas to Santa Fe Springs,CA to inspect and test drive their coach (Stier's).

Interestingly enough, they avoid all problems with the LLC by driving it to the state line and conducting the sale and delivery in Primm, NV..... I hope we are not in a "Tangled Web". Thank you both for your help and advice.

Glad I could help. Re: "Tangled Web", If you are not sure, consult your attorney, Bennett. That is what you are paying him for. <grin>

Good luck,
Liz Pearce
 

Shayne

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HOpe I helped a bit .  I  Illinois  they tracted mine once the Montata lisc wwere on it and from the plate # and then checked with Montana All was ok  But then they came by again checcked to see who lived in the house it was Parked at and then checked surrounding states and found the unit was bought in INdiana.  Checked my drivers lisc  and Illinois does not recognize  Montana LLC  Thats why I went back to the New Horizon and let them handle it.  Thier baby.  They finally paid it, saying easier and cheaper then fighting it.  Thought they were wrong, but what do I knnow.Anyway  They were(State of ILL) were going to with hold my Retirement checks from the state and any tax refunds due plus place a lien on our properties if it weren't paid.  I'm certainly glad I went the LLC route with New Horizon cause it was a lot cheaper in the long run. for me.  Glad you have Bennet  good luck.
 

29er

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2845 Sorrel Street, Las Vegas, NV 89146
Shayne, you didn't help a"bit", you helped a lot.  We have decide to go with Bennett, in fact the LLC is being registered today. I was against financing the motor home, but wonderful wife trumped me, and we went with a Montana financial institution and we are getting the insurance from a Montana company. That's really what Bennett suggests on their web site.

As compared to your state, here in Las Vegas, if your car is stolen or your home is broken into, if you want a police report YOU MUST GO TO THE STATION and make the report. Cause they are not coming here to the house.

My next report:  what we bought and why..you may be surprised. Remember my wonderful wife drive a high power sports sedan and I have a performance Mustang.  Driveability was number one!!
 

Shayne

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The best thing of all of this is you will be getting on the road o RVing.  The rest doesn't matter as long as you make the Boss Happy.  If she's not happy then you won't be satisfied with Rving no matter what and where you buy.  Been there done that more than once.  Good luck and let us know should need assistance, cause for sure someone of these great people here on the forum will be able to aid you.  Again  getting Rving and good luck
 
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