Santa Clara, CA · Member since 2018 · 44 posts · 7 votes
Hello,
..CA-based beginner investor with RE-investments in multiple states.
> Assumption: Currently break-even, future cash-flow. ;Keep properties for long duration.; ..Two member (Husband + Wife) partnership.
> Purpose:
Priority# 1: Asset-Protection.
Priority# 2: Anonymity
Priority# 3: Tax protection (saving)
> Query:
Which could be the feasible option among:
- Delaware Statutory Trust
- Land Trust
- Series LLC (Multiple in each state); and then having a parent LLC. (WY etc..)
It is not known to me whether there would be any issues passing Properties in Land-trust to next generation… Please share your views on how popular/optimum option.
@Anurag D. Be careful of the source of the "real-life details". On this forum I have seen good advice, bad advice and advice to do things that was unquestionably illegal.
You should probably talk with an attorney. The framework of your question does not align with your priorities.
Land trusts do not provide asset protection, so do not meet your #1 priority.
From what I have heard, a Series LLC has questionable asset protection vs a normal LLC, but I'm not sure you are understanding Series LLCs how series LLCs work based on your description of the structure.
All of these could be set up to minimize tax in the same way so that priority could be ignored.
Do you really need the asset protection? I've seen many newbie investors whose first action is creating an LLC and all they did was waste money and didn't realize that they could not get agency debt within their LLC.
From what I have heard, a Series LLC has questionable asset protection vs a normal LLC, but I'm not sure you are understanding Series LLCs how series LLCs work based on your description of the structure.
....
Thank you Greg for taking time to respond.
> Intent is to PROTECT Personal (Primary Home) & other Assets (NOT :) piercing the corporate veil) from rental-properties litigation, and smoothly PASS-ON rentals to next-generation.
Attorneys certainly are good in process, but may neither have comprehensive LLC-policy-details (for all 50 states), nor may be malleable to prevailing market details (how to manage mortgage loans).
Bigger Pockets is a great source to share/procure real-life details.. and then Make the move.
@Anurag D. Be careful of the source of the "real-life details". On this forum I have seen good advice, bad advice and advice to do things that was unquestionably illegal.
Hi Anurag. I agree with Greg. Go talk to an attorney and get your questions answered by the experts. There are several who specialize in RE investors. I personally use KKOS lawyers but there are others, Anderson Advisors, etc. Good Luck!