Posted by M Stevens on March 27, 2000 at 09:34:35:
Limited partnership ? and is that 750 for all the properties?
Trust or Corporation ? - Posted by M Stevens
Posted by M Stevens on March 26, 2000 at 23:09:19:
Out of all the newbies , I’m the newest, I just found out about this place. This place is great! I read everything but this time I have a question. I Have 6 properties one is my homestead, 5 are rentals. I have about 200,000 equity in these 5 properties my LTV is less than 60%. Someone told me I need to set up a corporation or trust to protect myself. Someone else told me if you form a corporation, they can sue that just as easy, I live in Texas. Does anyone have any thoght. I’m new, go ahead thrash me !
Mike
Re: Trust or Corporation ? - Posted by ann
Posted by ann on March 28, 2000 at 01:59:50:
You need to talk to your CPA or an attorney and set up an entity that will limit your liability to the assets of that entity only. To that effect, you should probably put only one property in each trust or LLC or other type of corp so that if anyone sues you, they can’t get to your other properties. I know of someone who was sued by a tenant who fell off of a porch on one of his rental properties and had to have her leg amputated. All of his properties were in his name and he could have lost them in the lawsuit but fortunately they settled for the insurance money and he didn’t lose them! Now he set up a separate LLC for each separate property. So if you want to protect your assets from lawsuits and the like, you should probably think about doing the same–using whichever type of entity you and your CPA or attorney feel best suits your needs.
Re: Trust or Corporation ? - Posted by chris
Posted by chris on March 27, 2000 at 12:36:51:
m stevens,
i am a newbie. what is LTV?
Chris from newbieville
Cheaper than an atty… - Posted by CarolFL
Posted by CarolFL on March 27, 2000 at 07:39:57:
I would strongly suggest Bronchick’s materials on asset protection, corps, trusts, partnerships, etc.
He made something which was bigger than a bread box understandable… and we have had a hard time getting any local legal beagle to be on the same wave length.
Carol
Re: Trust or Corporation ? - Posted by David Alexander
Posted by David Alexander on March 27, 2000 at 24:43:52:
Where bouts’ in Texas?
I’m in Dallas.
Sure anyone can sue you for any reason. Can they when, different story.
So, the answer to your question is both (sorta and depends). Trusts offer privacy but no proection. For protection of rental properties I would say look into LP’s. $750 bucks to set one up in Texas, and would probably offer better protection especially if the general partner was a Corp.
David Alexander
LTV=Loan To Value - Posted by Bert G
Posted by Bert G on March 27, 2000 at 13:17:40:
LTV=Loan-To-Value
Basically, its the ratio of the value of the property to the amount of the loan it secures. So, if you have a $100,000 property, a 65% LTV would give you a $65,000 loan.
BG
Re: Trust or Corporation ? - Posted by M Stevens
Posted by M Stevens on March 27, 2000 at 09:11:31:
Sorry to sound stupid, but what are LP’s?, thanks for your response I am in Dallas also, I’m near Rockwall. Things sure are growing around hear!