Land Trusts vs. LLC’s - Posted by Mark A. Nyman
Posted by Mark A. Nyman on January 26, 2000 at 21:57:39:
I am getting different advice on how to purchase property and whether to use a land trust or LLC per property or one LLC for a bunch of property.
I have always bought property in my name. I am unclear on which entity makes the most sense for my situation. The accountant that I have always used favors one LLC and then transfer to other LLC"s as I get more properties. The lawyer says one LLC per property with separate checking account per property.
I would like feedback on what to do in this situation.
I was also told by a banker that if I put the property in a trust that I wouldn’t be able to borrow against that particular property.
I have two properties that will close in February and I want to set these up in the proper entities. I am also forming an LLC for buying and selling properties. The paperwork is in process. I am considering that rather than buy and sell and incur the tax consequences that I would refinance and pull the money out and keep a property which has a positive cash flow. If the cash flow is not positive then I would sell.