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9/22/2017 12:11:25 AM
Posted: 8/24/2005 8:54:34 PM EDT
If I want to purchase some additional rental property, what is the best way to do it? Set up a trust fund, and then start a LLC (owned by the trust)? Or just go with the trust fund?

What if I already have a rental property in my name? Can the LLC buy it from me? Or, do I just transfer it to the LLC?

What if I want to leverage the equity? Help!
Link Posted: 8/24/2005 8:57:44 PM EDT
dood....I bet that you know more real estate terms than most landlords.
Link Posted: 8/24/2005 9:18:26 PM EDT
First of all, unless you want to, and i mean really want to pay higher rates and insurance, then don't form a business to buy the property. Just do it in your name and get enough insurance on a rider to cover getting sued. Otherwise you are in for a bigger payment.

Next, if you have equity and want to use it, fine. That is a choice you must make. If you already have property in your name, great. But the more properties you get, the more of a risk you become.

If you want multiple rental properties, try closing on 2 in a month, it will look like you are buying one property to each lender because the loan wont have hit the books yet.

For an LLC, some insurers wont insure you because of the LLC protection.
Link Posted: 8/24/2005 9:29:25 PM EDT
[Last Edit: 8/24/2005 9:46:31 PM EDT by PeteCO]
You can transfer the RE into a land trust, but that will only obfuscate who owns it. If you put it into a corporate entity of some kind be verrrrry careful the corporate veil cannot be breached, otherwise you have wasted lots of time and money for only an illusion of asset protection.

Putting an LLC into a trust is kind of wasteful.

You will have a hell of a time trying to find a lender that would finance a purchase by your newly-formed LLC without a personal guarantee.

BTW C-corps are the most benefical entities as far as taxes go. Yes, I am aware of the dealer issue. It just seems that everyone has a hardon for the magical "LLC" these days.
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