Posted by JHyre in Ohio on October 14, 2001 at 06:20:30:
on the nature of the L/O’s invoved and how they are structured. If the eventual result is that you get really good tenants but few truly end up exercising L/O, I’d go with LLC because you are in effect “holding”. If on the other hand, alot of people will repair their credit and get the financing to actually exercise their options, I’d go with corp, because you are acting like a “dealer”.
John Hyre
Bill did you really do the post on the… - Posted by dewCO
Posted by dewCO on October 11, 2001 at 14:03:12:
main news group today re: PACTRust being dangerous??? I’m betting not.
You bet wrong! - Posted by William Bronchick
Posted by William Bronchick on October 11, 2001 at 17:56:21:
I did.
Trust vs LP - Posted by ScottS
Posted by ScottS on October 11, 2001 at 18:34:21:
Bill,
Other then a trust offering more privacy because there is nothing on public record, are there any advantages to using a trust over LP?
I like the fact that if someone was to sue they could only get a charging order and the general partner could decide not to distribute profit.
ScottS
Re: Trust vs LP - Posted by William Bronchick
Posted by William Bronchick on October 11, 2001 at 20:11:43:
Not one vs. the other, but IN ADDITION TO. The trust is simply a title holding device. The beneficiary of the trust can be a limited partnership or LLC.
Re: Trust vs LP - Posted by Andre(NC)
Posted by Andre(NC) on October 12, 2001 at 08:06:42:
Probably been answered before… but is there any problem with an S corp being the beneficiary?
Thanks
Andre
Re: Trust vs LP - Posted by William Bronchick
Posted by William Bronchick on October 12, 2001 at 09:46:31:
No, but the LLC is more tax neutral and provides better asset protection.
Re: Trust vs LP - Posted by Andre(NC)
Posted by Andre(NC) on October 12, 2001 at 10:29:12:
I have an S corp b/c my plan is to do sandwich lease options. So I guess you’re saying it would be more beneficial if taking properties “subject to” via the trust to use an LLC? Guess I better read through your land trust course again.
Re: Trust vs LP - Posted by Bronchick
Posted by Bronchick on October 12, 2001 at 11:05:46:
No, use the land trust. Whether the LLC or S corp is the beneficiary of the trust is a tax issue, depending on whether the property is short or long term.
Re: Trust vs LP - Posted by Andre(NC)
Posted by Andre(NC) on October 12, 2001 at 15:03:50:
Think I got it, but one more question. If I remember correctly from an article you wrote, LLC is for long term and S corp is for short term. How would you define long term in years?
Thanks.
Re: Trust vs LP - Posted by William Bronchick
Posted by William Bronchick on October 12, 2001 at 17:12:28:
Longer than 10 minutes. What I mean is, “what is your intention when are buying it - for long term or immediate resale?”
Re: Trust vs LP - Posted by Andre(NC)
Posted by Andre(NC) on October 13, 2001 at 15:12:48:
I plan on leasing it with an option to purchase. I have no intentions of doing a straight rental.