Land Trusts with LLC as Beneficiary
I posted this over in the Tax forum too, but since it deals with both legal and tax issues, I am double posting it here. I apologize.
Here is my current situation. I am in the middle of three deals. First, I am purchasing a mixed use property that contains a storefront and 2 units. Second, my partner and I are purchasing a condo unit. Third, my partner and I are taking another partner to purchase two multi-unit houses only to be sold as a "package".
The mixed lot I plan on purchasing myself so I guess I can set that one up in a land trust as people have said and then setup an LLC and name the LLC the trustee.
For the second deal. My partner and I are purchasing the property together. He told that bank that it will be owner occupied to take advantage of the 5% downpayment. How would one go about this situation if I wanted to do the simliar LT/LLC?
For the third deal. My partner and I had to take another partner. The seller will only sell both as a package. I will be owner occupied on one and the third partner will be owner occupied on the other. Again so we can take advantage of 5% down. I feel we should definately form an LLC for this deal. Furthermore, the current owner is willing to hold the 5% for five years. So can the LLC/LT be used in this scenario with owner holding for 5 years as well as two of us being listed as "owner occupiers"? How do most of you more experienced investors use the Owner occupancy to your benefit?
Next question.
My partner and I plan on doing a few deals together, and eventually when our portfolios have grown, we plan on doing our individual investments. I have planned to take my individual deals and put them into a few LLCs /Land Trusts.
Should I create a "mother" umbrella LLC or corp to oversee the other LLCs? I am thinking that one entity getting money pooled into will give me larger purchase power. "Management LLC". What would this management company exactly do / be responsible for? Is setting up this mother company more tax beneficial in your past experiences?
-John
Mr. Vodka
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