LLP : IRA Ltd Partner and MH Biz General Partner? - Posted by MB(Ga)

Real Estate Investing Real Estate Financing
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Posted by Anne_ND on June 07, 2006 at 14:37:41:

Hey Marteen,

When I started out in RE I had a mentor who was a crazy woman about privacy. I had trusts, I had LLPs, I had corps, I had LLCs. It was a huge mishmash of entities that cost me way more money in taxes, tax prep, yearly fees and insurance than I had any need to. I did not listen to my attorney when he told me to keep it simple. I should have listened to my attorney.

My advice is that you do not overburden yourself with entites until you have assets to protect. Educate yourself about LLCs and trusts, and be sure to get lots of the right kind of insurance, but find a good attorney and follow their advice as long as it makes sense to you.

I recently attended a seminar by Dyches Boddiford. He made a lot of sense to me- he uses trusts and LLCs but seems to have a handle on when it needs to get complex and when you should keep it simple. Be skeptical of the fearmongers (you know who you are!).

Good luck,

Anne

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LLP : IRA Ltd Partner and MH Biz General Partner? - Posted by MB(Ga)

Posted by MB(Ga) on June 07, 2006 at 02:06:27:

So I have been in the archives digging and digging for more information while waiting for my courses to arrive. In trying to understand the idea of IRA, personal property (or land trusts), and REI, I wonder if the this is possible …

Form a Limited Liability Partnership
Limited Partner (XYZ IRA)
General Partner (XYZ LLC)

Formed XYZ High Yield Trust

The limited partner has purchased beneficial interest XYZ Trust.

The limited partner invests in XYZ Trust which has it’s own EIN and opens a checking account with qualified trustee as only authorized signer. The Trust becomes titleholder to a property. The GP markets the property and deals with the consumer. Sales are split so that IRA receives note and GP receives cash down payment.

  1. Am I understanding the basic principles correctly?

  2. Does it make sense to create a LLP where the LP receives notes the GP receives options and down payments? Then Another LLP where the LP receives 90% of (wholesales and classic Lonnies) and the rest is distributed to the GP?

  3. Is there a limit to the amount of trusts an IRA can have beneficial interest in?

I know it’s late but I am buzzing with questions. I look forward to meeting everyone at Bootcamp next year.

Marteen(Ga)