How Do You Hold Your Properties?

Just wondering.....how do you all hold your sub 2 properties and why have you chosen your preferred method? Do you hold in a trust and is there a difference between land trust and title bearing trust (not sure if that is right)? If you use a trust, how do you have the trustee worded in the trust? OR, do you just deed the property to yourself and quit claim it to your LLC?

Comments(4)

  • db1030986th May, 2004

    Does anyone hold title on their sub2's for lease option?

  • myfrogger6th May, 2004

    I use an S-corp for quick flips and an llc for longer term holds. If you are buying sub2 and rehabbing then an S-corp....if you are selling on land contract or keeping as a rental then an llc.

    Your aquisition strategy had nothing to do with how you should hold the property....your exit strategy does.

  • db1030986th May, 2004

    Are there any trust experts out there? Thanks myfrogger for your answer.

  • arytkatz6th May, 2004

    db:
    I think if you look through the archives here you'll find a mix of both strategies. Some investors swear by land trusts, others just take the property in their corp (LLC, s- or c-corps: see myfrogger's advice above), others (especially just-starters) just take them in their own names (IMHO not too safe a method).
    It comes down to your comfort zone as it relates to DOS: trusts have an advantage in shielding any transfer from the seller to you, but they do add a level of complexity that (in some cases) can scare off a seller (or even the beginning investor).
    [Before anyone flames me here, I obviously understand that it's all in your presentation of setting up the trust and in the motivation of the seller as to whether this flies or not.]
    My feeling is no matter which I do, my LLC is going to be either taking title or becoming the beneficiary of the trust: privacy/DOS issues aside, I prefer the asset protection provided by the corporation.
    My .02, not legal advice by any means, always consult professional legal advice, etc.
    Andy
    I [ Edited by arytkatz on Date 05/06/2004 ]

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