where to start - Posted by chuckpnoy

Real Estate Investing Real Estate Law
1

Posted by chuckpnoy on July 31, 2005 at 21:51:23:

Colin,

Thanks for the feedback. I apologize, but I got a little confused with the last part.

Correct me if I’m wrong.

You are saying I should first set up my entity (either a C or S corporation, or LLC).
*I have no properties just yet. Do I still set this up first?

Then aquire sub2 properties in a landtrust.

Who do I make Trustee?

Then have my entity be the beneficiary?

Is this correct?

Thanks

2

where to start - Posted by chuckpnoy

Posted by chuckpnoy on July 29, 2005 at 19:52:18:

I know this question has been asked a million times. I’ve searched archives, but still am not clear as where to start.

I want to begin wholesaling homes to build capital. Then with enough capital (10-20k), I would like to control properties using the Sub2 method (buying using land trusts for each property). From there I would like to either rent or lease option.

I just started marketing that “We Buy Houses” to get the ball rolling. Now when it comes to setting up an entity, which should I consider? S corp, LLC. And when should I set that up? Immediately or down the line?

Any info would be appreciated!

3

Re: where to start - Posted by Colin Bochicchio

Posted by Colin Bochicchio on July 31, 2005 at 01:45:52:

Chuckpnoy,
As to the entity setup I would research what is best for you and then go to a good R/E attorny or tax CPA to assist you since as a legal disclaimer I can not give tax advice. Using land trusts is the way to go so create your company first since using it with land trusts will be done right the first time and vest the corporation either C or S corp or an LLC as a beneficiary into the land trust as this provides the best asset protection for your real estate property.
If you do sub2 then put vest the deed into the land trust you still violated the lender due on sale clause because the seller had to quit claim or grant claim the deed to you then you put it in the land trust. Check with me since, I use land trusts where the legal and equitable title is vested to a 3rd party trustee legally, ethically and of course safely an no due on sale issues and one is protected from bankrupcties,IRS liens, judgments,maritial disputes and so on.
Email is colvegas07@hotmail.com
Thanks