Just Getting Started How Should I Proceed?
I am just getting started in REI and would appreciate any pointers on Legal structure. My intent is to in the beginning either Rehab and sell and/or rent. What form of protection do I need? LLC, S-Corp, Land Trust.
Also what form of insurance should I acquire for the two senarios (Rehab to Sale, and Rental.)?
Thank you for you time. It is sincerely appreciated.
Jason.
Jason, I would reccomend an LLC if you are going to hold rental properties. I would also reccomend reading up on asset protection from guys like William Bronchick and Mark Warda.
[addsig]
what is the preferred method of protecting ones assets Darryle-CA if you can go back and search for old property transfers? how would you protect from this?
I always record a junior trust deed on my own properties.............assigning beneficial interest in the junior trust deed to landtrust # 1. Then I grant deed the property subject to the underlying trust deeds to landtrust #2. In the event someone realizes I am still owner of the property and wins a judgement against me, their judgement will be subordinate to my junior trust deed. In other words I will have the power to foreclose my lien...............wiping their lien off title.
I hope this helps.
Darryle-CA...just a couple more questions.....
How then is this accomplished without revealing your identity? If you do not have someone that you trust to put the lein on your property, then how can you use a company that you own? if someone did a search on you ( like this atty did on me for a mort. co) they will find that you own the company that placed the lein. Is that not correct? I had someone else recommend that I do this to protect my home. Please advise how you did this effectively. Thanks!
Quote:
On 2005-01-31 07:35, Swynn wrote:
Darryle-CA...just a couple more questions.....
How then is this accomplished without revealing your identity? If you do not have someone that you trust to put the lein on your property, then how can you use a company that you own? if someone did a search on you ( like this atty did on me for a mort. co) they will find that you own the company that placed the lein. Is that not correct? I had someone else recommend that I do this to protect my home. Please advise how you did this effectively. Thanks!
Swynn:
Use a landtrust to hold beneficial interest in your junior trust deed. Do not record the name of the trustee of your landtrust in public records. Example: grant the property directly to the landtrust.............Swynn hereby grants to the 123 Trust, NOT Swynn hereby grants to John Doe trustee of the 123 Trust. Include a clause in your trust agreement and trust certification which says........" Record title to be held in the name of the trust itself: to wit "The 123 Trust"
I hope this helps.