Renting Through LLC?
Property is in my personal name, but all lease agreements are signed between Tenant and LLC that is owned by myself and spouse. Does this create any legal problems? Would a creative attorney be able to invalidate the lease because the house is not owned directly by the LLC?
Nothing has happened yet, but I am just trying to learn so I can avoid future complications, if any.
Thanks in advance for your thoughts.
JS.
finniganps,
Please clarify what you mean. I thought the LLC, combined with a good umbrella policy, offered more protection than simply renting outright. Why do you feel this does not offer any protection?
Thanks,
JS.
There are eight ways to take title, six of them allow for co-ownership:
1) Community Property;
2) Joint tenancy;
3) Tenancy in Common;
4) Tenancy in Partnership;
5) Title Holding Trust
6) Community Property Right of Survivorship.
For a independent analysis, here is an excellent report from Chicago Title Company that should answer many of your questions.
http://www.chicagotitle.com//pdfs/8ways.pdf
I use a land trust and assign the partners a beneficiary interest proportionate to their contributions. You may also want to consider a limited partnership or an LLC. For your best protection, you may consider placing the property in trust and taking title in the LLC.
Best of luck to you.
Da Wiz
Thank you Mtn i am reading on it now.
Thank you Mtn i am reading on it now.
is this true only with real property or with good will too.
I have contacted a lawyer and have meeting schedule for this saturday. Can you give me names of some good companies. And if they have trust can childerns take out the equity from the house. 2. The property still have a mortgage on it how will that effect the trust.
If you want to remove equity from the property, there are only 2 optios: borrow againt it, or sell it.
According to your post, they would not qualify to borrow since they do not have the earnings to repay the loan.
They may have to sell the home and find another, less expensive place to live. In any case, with your uncle the only income source, and him ailing and only working part time, how are they going to keep up with their present mortgage payments?
Mortgage foreclosure would wipe out all their equity.
[addsig]
I can see why everyohne gets pissy about you always wanting to talk about land trusts.
Anyway, just go to the bank or mortgage broker and get pre-qualified. The owner just wants to see that you can qualify if you need to.
John(LV),
Hundredfold said that the property has a lot of equity. I can envision a deal where the seller may allow the buyer to take over the existing mortgage with a low balance relative to the FMV of the property, but will still want to be cashed out of a significant portion of the equity.
Hundredfold really needs to tell us what numbers are involved in this deal before we have a clear picture.