Posted by ReggieSC on February 13, 2002 at 11:39:01:
Where would the LLC get the money to fund the deal?
What is the best for “Lonnie Deals”?? - Posted by ReggieSC
Posted by ReggieSC on February 05, 2002 at 17:29:01:
I know this question has been asked before in this forum, but it still unclear to me if a Land Trust, Corp. or LLC is best for these type of deals. I see these type of deals as being passive b/c once you fix the mobile homes up,you then provide financing by creating a note and receive your profit over time. If this assumption is correct, then wouldn’t an LLC be the better entity to hold title? Any help that is given is greatly appreciated. Thanks
-ReggieSC
Corp VS LLC - Posted by mike
Posted by mike on February 07, 2002 at 06:50:54:
John, I’d like to ask a follow up. In order to avoid being classified as a dealer, the common recomendation is to incorporate, but what would be the effect of forming an LLC and electing to be taxed as a corp? Would this achieve the same thing? I ask because here in Texas the filing fee for LLC’s is less and the state taxes LLC’s as corporations (franchise tax). Would this election change the pass through quality of the LLC? If so, it seems to me that I could avoid dealer status for my rehabs by electing corp. taxation for an LLC and have a much easier record keeping task.
Lonnie Deals - Posted by JHyre in Ohio
Posted by JHyre in Ohio on February 06, 2002 at 06:33:21:
I prefer a corporation (whether C or S depends upon your individual situation) to hold title to homes and make the sales, and an LLC to hold the notes.
John Hyre
Re: Lonnie Deals - Posted by Lori
Posted by Lori on February 06, 2002 at 10:38:47:
John, how do you do the transfer the note to the LLC? Fund the LLC with a contribution to buy it at a discount? Just assign it? I had considered this but not sure of the best way to do it. Thanks.
Re: Lonnie Deals - Posted by JHyre in Ohio
Posted by JHyre in Ohio on February 07, 2002 at 06:16:13:
LLC funds the deal by giving the corp money to make the purchase. Corp buys and sells, remits note & proceeds to LLC, less a fee for its services.
John Hyre