LLC or Land Trust after refinancing?

2 Replies

SFR cash purchased to hold/rent, deed on my name (not business), invested 45k in rehab, want to refinance with cash out and also be able to deduct all the rehab expenses. Do I cash out first, start a land trust then transfer property to land trust before year's end? please advise

Your thoughts look like they are in line with the article I posted using land trusts to avoid due on sale calls. However, you didn't identify if the land trust has you as the beneficiary or a LLC. By using a pass through LLC, you will get the separation of personal from business assets you want. You will want to work with an accountant to separate your finances from the business operations and other actions that make good business sense.

Again, this is not legal advice but an initial review of your action plan.

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