Is This Possible?

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Hi all, I am new and looking to begin a real estate investment firm. Im still learning so if I say something completely stupid my appologies.

Lets say I began an LLC firm in Fort Lauderdale, FL and then bought my house in the firms name. Would this be a beneficial setup? Write it off as a business expense and I would pay no property tax because I do not own it....?

Also, my inital strategy is to buy/fix/sell or buy/appreciate/sell for a few years and then focus on the buy/rent aspect. Thanks for your information.

Comments(12)

  • joecrane13th May, 2005

    The type of setup you need as far as corps go is going to depend entirely up to your circumstances. I would recommend reading through several books on incoporation.

    You cannot write off the purchase of a house as a business expense. It is depreciated and the depreciation is recaputered at sale.

    If the LLC owns the property, the LLC pays the tax.

    Pick the buy/fix/sell or buy/appreciate/sell strategy and read everything you can find on it. The second one is very difficult.

    You need to read a lot on business structure and the type of investing you want to do. Some of the questions you asked take entire books to answer. These forums are built for specific questions not general ones like "is an LLC a good setup?".

  • bscivolette13th May, 2005

    I appreciate the response.

  • rayh7813th May, 2005

    Not unless you have reason to suspect she has moved. Phone disconnected would be enough for me to crack the door and look in for furniture. Could also check and see if neighbors have seen them move.

  • norrist11th May, 2005

    The first named insured should be the titled/deeded owner of the property. You may "control" the LLC, but the LLC should be the 1st named insured...

  • kburke11th May, 2005

    Spoke to my agent just the other day about this. My partner and I have mortgages in our name but deed the property to our LLC after closing. My agent says that we just need to add the LLC as an additional insured.
    [addsig]

  • rayh7813th May, 2005

    Quote:
    On 2005-05-11 23:27, kburke wrote:
    Spoke to my agent just the other day about this. My partner and I have mortgages in our name but deed the property to our LLC after closing. My agent says that we just need to add the LLC as an additional insured.



    I would be willing to bet the agent will not put it in writing that you would be covered that way if the deed is in the name of the LLC. I had a few that said the same but after they checked I had to have commerical ins.
    1 st insured has to match the deed otherwise they can turn down a claim.
    I dont use LLCs because of this and then you have to have commerical insurance and every quote I received was much higher.

  • norrist14th May, 2005

    The "commercial policy" will be higher, but it is "apples to oranges" for reasons I listed in the prior post...

    Tim

  • rbjj5th May, 2005

    I hope this is posted in the right forum , and someone has some help and comments for me.

    This has been such an uphill battle for my son, and myself since he has given me authorization to talk for him, because his job takes him out of town so much.

    Thanks for any help you give.

  • rbjj6th May, 2005

    I really need some help on this, so please give me your replies.

    Thanks !

  • joecrane6th May, 2005

    If you want to sue them, call an attorney and explain your situation. If the case is a winner, they will take it and earn their fee from the suit.

  • rbjj6th May, 2005

    Happy home ,

    I just received a call from the trustee assisant., and she said she has contacted Wells Fargo to have them contact me. She said she will keep calling them until they contact us about comming back to change the locks back.

    I have tried to talk with the trustee everytime I call, but as close as they will allow me to get is to the assisant.

    The information you have provided is of much help to me, and I will post the results when they get back to me.

    Please , if you have any more advice , I would be glad to hear it.

    Thanks !

  • InActive_Account15th May, 2005

    I am not an attorney. Heres what I can say:When a property is in foreclosure, the lender can "winterize" a home which includes changing locks, emptying the waterheater, board broken windows etx. However, they can usually only do this if they feel the house was abandoned and thus the lender is doing this to protect their interests. If your son was clearly in the house, had utilities still turned on-water and power and had at least a bed and a few pieces of furniture, then its strange the lender would have done www.this.If you did sue WElls Fargo, what would your true damages be? I assume you could recover the costs of changing the locks etc. However, since they got the stay lifted on the house, they are going to move forward with the foreclosure anyway unless you are able to reinstate or refi or sell before then. Have you attempted to try a workout program with the lender? You didnt specifiy if this was a 7 or 13 Bk, but Ill assume its a 7 since under a 13 the lender would be forced into a structured repayment plan from the courts.

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