How To Protect Rental With LLC That Is Under A Trust
I am trying to protect my rental property by putting it under an LLC.
I already created the LLC
The property is currently under a land trust.
How do I set this up so I am protected?
Do I just change the beneficiary of my trust using a document that will not be filed publicly and I am protected?
I just want to make sure I am protected.
Robert
Protected from what? Do you manage the property yourself?
My opinion...Avoid Condos as Primary Investments. I made the mistake of going through a similar situation with a condo...I still own.
In the end...I ended up paying thousands extra.
Condos are scam when issues arise with the HOA. Why? Because, even if you sue my friend...they will charge your account the fees to defend the case...even if you win. The HOA Lawyers have an incentive to drive up legal fees.....
This lawyer nor this HOA gives a damn about your costs. They will let a $50 trash fee roll up to thousands if you let it.
Pay this fee, take a loan to pay the fee if need be, and please dont sue or make claims aganist the HOA if you are still an owner. I dont think you can afford to pay both the Plantiff and Defend legal fees? Good luck
Time to turn the matter over to your attorney, if the amount under dispute is substantial.
Recognize that you will be paying the HOA lien and all back dues anyway from the proceeds of your sale should you sell before the HOA forecloses on your condo.[ Edited by NewKidInTown3 on Date 01/13/2008 ]
I am looking at the CCR and CA Law.
Transfering into an LLC will not protect you from actions taken before the LLC was formed. Collecting payment for services provided by the LLC in your personal name blurs the boundary between the LLC and the individual, or even erases it. When LLC assets are treated as personal assets, LLC liabilities become personal liabilities also.
Hardly seems worth the hassle for $200, but if you feel strongly enough about it the money is not the issue. Personally I would not appear in court for $200. Odds are the individual will be a no show, but good luck collecting on your default judgement...
Chris (not an attorney!)
I say go after the sole prop or what every entiy was running the place when the gift cert was sold.
A nice neat small claims case.
Good practice for the big case.
Your personal circumstance will determine the answer to most of your questions.
You really need to discuss this with a CPA you will use to set up your program and follow thru.
I would be just guessing and wasting your time and mine to attempt to answer your query.
[addsig]
Thanks for your help. But would being a dealer of a property also include assigning contracts, assigning contracts or trusts for a short sale, assigning notes and flipping REO packages as well?