Form LLC for RE Investments?? . . . . - Posted by Stacey

Real Estate Investing
#1

Posted by Jim IL on January 21, 2001 at 22:05:03:

Stacey,
First, congrats on your deal.
To protect yourself and the investment, I’d place the home into a Land Trust as soon as you close.
This can be done for very little money, and will help you some.
I’d also get Bronchicks course for setting up a corp. or have an attny do it.
You can then assign the beneficial interest in the trust that holds title to the home to your new corp.
I do like to protect my assets, so I do it this way myself.

You may also want to post your questions to the board at www.legalwiz.com and see what Bill has to offer.

Good luck to you,
Jim IL

#2

Form LLC for RE Investments?? . . . . - Posted by Stacey

Posted by Stacey on January 21, 2001 at 20:26:34:

Closing on first deal in February - Purchasing as cash deal via home equity. Purchase Price $59K (HUD), appraised $95K - Total Expenditures including hold cost for 4 months, title, advertising, interest, insurance, material/labor as well as a $1,000 contingency adder=$72k total costs.

Hopefull to profit in the neighborhood of $20K. This property was the epitomy of the “patient” deal… Watched home for several months, monitored comps - property initially listed at $89,000 some bids were made (mainly low-ball at 40% below list), every month HUD decreased by $8 thousand…, yet HUD did not accept low bids when their list price was higher… No cash out of pocket (due to all equity in primary residence & one rental property). Line of Credit was set up months ago which will be utilized for material and rehabb costs…

Anyway, my question is regarding implementing a corporation. Does the IRS require the property to be in the business name at closing?- I’m not certain that we have sufficient time to set up LLC before closing?? May we use a recently purchased vehicle as a deduction if title is transferred into newly formed company?

Can a salary be drawn by shareholders only?

I realize this is alot to read - But I do have many questions . . . - JUST VERY JAZZED about first deal and have read many, many posts here and truly enjoy the responses. As you know, the other form of the human race those who are not involved in RE investing are NOT the easiest to talk to about these subjects… Thank you !!!