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OracleofMN
investor
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Two People - One Property
Sunday, May 25 2008 04:45 PM
Me and one other person will be purchasing an investment property and are not exaclty sure how to properly set up our land trust(s).
This is how I understand it to work:
First we set up a Land Trust (one for each of us), naming a Trustee, maybe 1st Family Trust and 2nd Family Trust - or some other name as long as it does not include our personal names. Then we buy and sell the real estate through the trusts. Finally, we set up an LLC. The beneficiary of all the trusts is the LLC, (which I we each own 50/50) so we have one banking account in the name of the LLC and the LLC files it's own tax return, generates a schedule k-1 for our personal returns.
Does this sound correct?
Thank you in advance.
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Randy Hughes
SFH Master Advisor
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Re:Two People - One Property
Wednesday, May 28 2008 01:25 PM
Oracle,
Sorry for the delay in responding to you. We had a problem with our Discussion Forum, but all is well now.
Yes, what you have described is very thorough...a good structure.The only thing i would add would be to consider each of you having your own LLC's (you should have a two member LLC but not necessarily with your co-investor as the 2nd member).
Randy Hughes
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