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LLC or Land Trust

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Peewee10

Guest
What is the name of your state? Illinois


I have 2 rental properties and plan to buy several more (townhouses and condos). Currently they are in my name.

Where should I put these? Should I throw everything into a trust or create a seperate LLC for each property?

Looking for protection from lawsuits, tax advantages, etc - also want to keep reporting and paperwork at a minimum.

Thanks
 
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pk_usf

Guest
LLC or Trust

Were you able to get your answer some where. I have similar problem. I was told to start a company (LLC) and buy property under that name.

Is it true then , that your properties won't show up under your credit.?

Also I have question my sisterm wants me to help her buy a home. I have to put my name on the morgtage for her to qualify. THe mortgage company tells me that I can have her pay me mortgage as rent, and show that as rental income, so this won't affect my finany capability for more homes and town house.
 
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chrissie

Guest
PeeWee,

Setting up separate LLCs for each property is a good idea--that way, if a problem (claim, lawsuit, etc.) arises from one property, it won't affect the other.

Here's a link to an article about holding property in an LLC:

http://www.mynewventure.com/?show=RealEstateLLC

To PK:

Don't take financial/legal advice from a mortgage company. The broker wants to make his commission by closing the deal, so he has a vested interest in telling you anything to get you to sign on the dotted line.

Just a thought: If your sister's credit history is risky to the point that she cannot qualify for a mortgage herself, I question your judgment in assuming such a huge financial obligation on her behalf. What if something happens and she does not pay the mortgage. Are you willing to risk your financial future?
 

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