We have a property that is in a living trust that we bought cash and just finished renovating. We wanted to take some cash out and maybe rent it out. Would we have to move it out of the trust?
As others have said it depends on the lender. It can be done in the trust if you find a lender experienced with this type of transaction, they are rare however which is why most people end up deedingto themselves and then back to the trust.
May I suggest you contact the trust department of some of the larger local banks or national ones and ask how they do it or for a referal, you might make a contact that could help you.
Setting up the LLC is cheap. The operating agreement that governs the LLC is what will cost some money. This lays out how the LLC will operate, how profits and losses will be split, tax matters partner, early termination, members leaving/entering the LLC, buyout clauses, etc. Do you know what you want to include in the agreement?
We plan on drafting the operating agreements and bylaws ourselves, and then will meet with an attorney. We do not plan on needing the services of an attorney to review those things with us. That said, any ballpark estimate? Thanks.
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Linlin,
As others have said it depends on the lender. It can be done in the trust if you find a lender experienced with this type of transaction, they are rare however which is why most people end up deedingto themselves and then back to the trust.
May I suggest you contact the trust department of some of the larger local banks or national ones and ask how they do it or for a referal, you might make a contact that could help you.
Setting up the LLC is cheap. The operating agreement that governs the LLC is what will cost some money. This lays out how the LLC will operate, how profits and losses will be split, tax matters partner, early termination, members leaving/entering the LLC, buyout clauses, etc. Do you know what you want to include in the agreement?
[ Edited by finniganps on Date 02/24/2006 ]
We plan on drafting the operating agreements and bylaws ourselves, and then will meet with an attorney. We do not plan on needing the services of an attorney to review those things with us. That said, any ballpark estimate? Thanks.