Which Entity To Use For A LO

Comments(8)

• 
  LeaseOptionKing30th January, 2005

  If you own the property, use the LLC; if doing a sandwich lease, use the S Corp.
  [addsig]

• 
  LeaseOptionKing31st January, 2005

  It is exactly like not owning the home, which is why you save on taxes by using the S Corp. You may follow it to completion by assigning your Option OR may own the property briefly in a simultaneous close, but either way your profit is business income (just like the flipping business).
  
  _________________
  "A deal is only as good as the quality of your Contracts." --Me[ Edited by LeaseOptionKing on Date 01/31/2005 ]

• 
  kevkos3030th January, 2005

  thanks mc, this sounds right.
  I actually do have separate copies of each, this is probably the safe way to go.
  
  Cheers,
  Kevin

• 
  jdflybuy31st January, 2005

  Also get $25 a piece from the t/b to run an extensive background check on them.
  
  JD

• 
  timdog7431st January, 2005

  thank you for the response. you definitly helped..
  i appreciate you taking the time to help me understand a little more...thanks

• 
  nplsdvr30th January, 2005

  dakirkley:
  
  in reference to real estate, the term "verbal agreement" should never be mentioned.
  
  always get it in writing. CYA.
  
  Nic

• 
  jdflybuy31st January, 2005

  Double your investment? Is this a sandwich lease or are you getting it for your personal residence. Is the property vacant?
  
  I have 2 sandwich leases going right now with a total of $40.00 invested.
  
  Myself, I would try to sign her up before she leaves and start marketing the property immediately.

• 
  dakirkley31st January, 2005

  I plan to lease option the property, then do the rehab work and either buy it at the option price and rent it out, or sell it. But the sandwich lease is another option to consider with less needed to invest.