Posted by phil fernandez on March 02, 2001 at 18:15:59:
I have a seperate LLC for each of my rental properties. If you plan on doing rehabs and flips, run those properties through a corp.
Title for rentals? - Posted by Mike(WI)
Posted by Mike(WI) on March 02, 2001 at 12:25:14:
I have a question about how I should title my properties held for rental. I have 10 buildings with from 1-4 units each, for a total of 25 units. All are titled in my name only, and all have bank mortgages also in my name. The mortgages are fixed rate with terms from 10-30 years, but need to be renewed every 3 years (so the bank can adjust interest rates). I think I am too exposed, in case of a lawsuite. Should these be put into a separate LLC for each building (I can do this thru the states website for $185.00 ea), or is there a better way to accomplish the same thing?
I do not want to have to pay Social Security if I become an employee of a corp. Am I correct in this assumption?
I may not have explained myself well enough, if you need more details e-mail me and I will supply whatever info is needed.
I also am now starting to search for some flips and rehabs. How should these be titled?
Thanks for your help
Mike(WI)
Re: Title for rentals? - Posted by Richard Roop
Posted by Richard Roop on March 02, 2001 at 18:32:25:
I title each of my properties in a land trust. It is a title holding enity only and there is no tax reporting consequences.
My “service” corporation is the beneficiary for rehabs and flips. Set up an LLC or Family Ltd Partnership for keepers/rentals. This enity becomes the beneficiary for the trust. You can put several units/properties in one LLC (less protection but easier) or you can create a new LLC for each…up to you.
My mentor on this is Bill Bronchick at www.legalwiz.com