Setup my LLC a few months ago

[higcorpllc]

Hi Everyone,

I would like to thank you very much for taking the time out to read my post, as I am sure many have asked a similar, if not the exact same question. I recently setup my LLC in March of 2007 with the intent of buying properties under its name. However, I started when the lending guidelines became a lot tighter than before.

In any case, I purchased two investment properties in my personal name for 137k/each with 10% down. I plan to pay off the 2nd mtge's by the end of this year so that I have 20% equity build up. When I do pay off the 2nd mtge's and have the option to refinance, what would the probability be to refinance the properties in my llc's name?

I have heard of the quick deed title claim/change, but I chose not to go down that route and create confusion later on. I apologize if my question is a bit ambiguous, but I am really looking for a little guidance on this strategy or feedback on how I should do it differently.

Thanks again for all of your time!
HIG

[mike_mn]

My advice is always to leave properties in your own name until you own 12 or more. Everyone has their opinion, mine is to have an umbrella policy and treat people fair.

[FirefighterB]

Mike_mn - I'm curious why you would say 12 properties as being the limit. After that, are you recommending starting an LLC?

[Debbie]

Mike_mn - I'm curious why you would say 12 properties as being the limit. After that, are you recommending starting an LLC?

That is Mike's preference and recommendation.

Opinions varies regarding trusts.

[DAM]

That is Mike's preference and recommendation.

Opinions varies regarding trusts.

although it was busy of you to answer for him,http://www.cosgan.de/images/smilie/tiere/a020.gif I would like to hear what Mike has to say.

[higcorpllc]

I have heard to keep the properties in my own name from other people as well; is it only because the mortgage options are better? What would the general benefits/disadvantages be?

Because I am not able to buy commercial real estate right away, I wanted to build up my portfolio to have assets that I can collateralize and then get into commercial realty. Am I going down the right track?

[Debbie]

although it was busy of you to answer for him,http://www.cosgan.de/images/smilie/tiere/a020.gif I would like to hear what Mike has to say.

:confused:

Throwing insult at me?

Hey, Mike---did I sleep walk and put a gag in your mouth?

[DAM]

:confused:

Throwing insult at me?

Hey, Mike---did I sleep walk and put a gag in your mouth?

Let me assume your position for a moment and answer for Mike. "you may as well have gagged me Debbie, for all the use the answer you posted was to the readers"


Testy Debbie? Why would you think that I was insulting you? I certainly would not hurl an insult in such a clandestine manner in which it would be difficult to grasp.

What I don't understand why you answered a question directed at another person, even if said person is lying in bed next to you with a gag in his mouth.http://www.mfbb.net/reaper/images/smiles/tlab06.gif

You merely stated somebody else's preference to a certain subject as if you truly know what they think, while doing so you did not give any details as to why they might think in such a manner.

If I owned 12 properties it would expose me to a lot of possible suits from money grubbers. Not only would I place them into trusts under an LLC but I would also have a large enough umbrella policy to cover the minor stuff too because I would not care to hand over all my hard earned assets to a parasite who twisted their ankle on the lawn of one of said properties.

My curiosity, like some others, remains as to why 12 is a number that Mike believes is when he would inc. his business??

[Debbie]

Let me assume your position for a moment and answer for Mike. "you may as well have gagged me Debbie, for all the use the answer you posted was to the readers"


Testy Debbie? Why would you think that I was insulting you? I certainly would not hurl an insult in such a clandestine manner in which it would be difficult to grasp.

What I don't understand why you answered a question directed at another person, even if said person is lying in bed next to you with a gag in his mouth.http://www.mfbb.net/reaper/images/smiles/tlab06.gif

You merely stated somebody else's preference to a certain subject as if you truly know what they think, while doing so you did not give any details as to why they might think in such a manner.

If I owned 12 properties it would expose me to a lot of possible suits from money grubbers. Not only would I place them into trusts under an LLC but I would also have a large enough umbrella policy to cover the minor stuff too because I would not care to hand over all my hard earned assets to a parasite who twisted their ankle on the lawn of one of said properties.

My curiosity, like some others, remains as to why 12 is a number that Mike believes is when he would inc. his business??

Me testy? Nope. Just puzzled. I noticed that your last two responses are not very nice, Dam and it will not be tolerated. From now on, keep your "not so nice" comments off the board and contact me via pm.

As to answering to your question, I posted the way I posted because I have been around long enough to know that each individual has their number preference.

For some, it's one property per trust (llc, land trust, etc).

For some, it's five properties per trust.

For some, it's 20 properties per trust.

In other words, different states have different rules about certain trusts. Few states do not recognize LLC. Other states do not recognize Land Trusts hence the number preferences to justify having trust(s). As Howard said many times, understanding about trusts takes hours to teach.

[higcorpllc]

So I guess, the underlying question is: what is the difference between a trust an d an LLC?

I guess I can fairly assume that an LLC is a bit more tax advantageous if I have filed for an -S corporation and record any income or loss on my personal tax return. I already have different owners (my direct family) and their shares split evenly.

What advantages do trusts offer? I do have an umbrella policy covering both units right now.

Once again, thank you so much for your guidance.

Regards,
HIG

[Debbie]

So I guess, the underlying question is: what is the difference between a trust an d an LLC?

Regards,
HIG

LLC is a trust. I know that sounds confusing and I'll see if I can explain it better.

You know that you and your spouse (General Partnership) are a family (land trust). Your parents (Limited Liability Partnership) are part of your family (land trust). Your siblings (Limited Partnership) are your family (land trust). Multiple relatives such as cousins, aunts, uncles (LLCs) are all part of your family. All members of your family are called "trusts".

In other words....

S Corp is a trust. C Corp is a trust. Limited Liability Partnership is a trust. General Partnership is a trust. Limited Liability Company is a trust, etc., etc.

In case you are not aware, not to mention more confusing, a LLC can be used as C or S corp.

The purpose for each trusts such as Corp, LLC, etc. is that each has it's own purposes. Imagine layer of clothes (trusts) that will give you more protection (protecting assets) to keep you warm during the winter time. BUT, your layers of clothes can be stripped one by one (piercing each trusts). That's the bad news. The good news is that majority of attorneys do not want to take the time and effort to pierce away one layer (trust) at a time just to find out who actually own the property(ies).

Some trusts are pass-thru. Some aren't. Few states do not recognize LLC, most do.

I'll let Howard (attorney) explain it further.....

[higcorpllc]

Wow, now I am beginning to see the light. Thank you so much Debbie; I look forward to reading Howard's response.

My accountant recommended I put each property I own under a different llc (trust/layer). I feel that this may get a bit confusing in the long run; or maybe ratios of 1 trust to an arbitrary number of properties is a better fit?

Regards,
HIG

[Debbie]

My accountant recommended I put each property I own under a different llc (trust/layer).
Regards,
HIG

WHOA!!!! Gotta STOP you right there for your sakes!!!!

Absolutely NO accountant qualifies to advise anyone regarding trusts!!!! Accountants are only good for tax purposes but make sure to get one who truly KNOWS and understand trusts.

First off, setting up trusts, especially the first few trusts, MUST be done by a GOOD and KNOWLEDGEABLE RE attorney. DIY can be done only if you understand the proper set ups. Otherwise you'd be operating out of ineffective trusts and you won't know it until you end up in court.

No accountant can set it up. Whatever you do, do not listen to the accountant until you talk and understand the trusts from the attorney.

Unfortunately, not many attorneys understand trusts and often uses cookie cutter types that may not benefit you.

Believe me, I only have limited understanding of trusts. In fact, hubby and I are going to see Howard (aka Spivalaw) this fall and take his classes.

[DAM]

LLC is a trust

no it is not. llc = limited liability corporation.

http://www.taxprophet.com/pubs/trust_and_LLC.htm

this will give you some more accurate information.

most of what is being posted here in this thread will only lead to misinform and confuse you.

[Debbie]

no it is not. llc = limited liability corporation.

http://www.taxprophet.com/pubs/trust_and_LLC.htm

this will give you some more accurate information.

most of what is being posted here in this thread will only lead to misinform and confuse you.

Dam,

You're going to have to read again.

LLC is considered as a trust. Instead of providing multiple links that would back up my statements, here's the MOST IMPORTANT link: Look into www.irs.gov

Better yet, consult an attorney to verify

[DAM]

Debbie,

i would be amazed if you can find where is say an llc is a trust at the irs site or any other.

and i stand corrected, it is not limited liability corporation it is limited liability company.

[Jim Johnson]

Hi Everyone,

I would like to thank you very much for taking the time out to read my post, as I am sure many have asked a similar, if not the exact same question. I recently setup my LLC in March of 2007 with the intent of buying properties under its name. However, I started when the lending guidelines became a lot tighter than before.

In any case, I purchased two investment properties in my personal name for 137k/each with 10% down. I plan to pay off the 2nd mtge's by the end of this year so that I have 20% equity build up. When I do pay off the 2nd mtge's and have the option to refinance, what would the probability be to refinance the properties in my llc's name?

I have heard of the quick deed title claim/change, but I chose not to go down that route and create confusion later on. I apologize if my question is a bit ambiguous, but I am really looking for a little guidance on this strategy or feedback on how I should do it differently.

Thanks again for all of your time!
HIG

This is a good thread as it keeps us all thinking about the 'what if's'. when looking a protecting assets from you and other assets some people look at sheer numbers of properties, I tend to look at total value. I tend to cap the net worth in my real estate holing entities at $1,000,000 each. In Colorado that is between 4 and 6 single family homes, maybe 2 small multi family buildings or any one large apartment building or mobile home park. I tier my assets for tax purposes and asset protection purposes. My properties are held in LLC's or LP's and are without exception not held in my name. I manage the entities with a S Corp. The S Corp does everything for the LLC's and bills each LLC or LP as needed. The S corp also manages my lending arms on both mobile homes and my hard money lending arm. The owners of the LLC's can be family members or trusts depending on what the LLC is set up to do.

Remember a LLC or LP will only protect you if you are honest. They buffer you from liability claims but if you do something that is illegal it is my belief you and your other assets will not be protected. We do not let our LLC's or LP's do anything in their own names. They just pass through money while allowing some protection.

as for putting property into trusts, LLC's and LP's... I purchase in my name and then move the homes into the LLC's, LP's or trusts. The entities are just for holding properties and they would not have the ability to qualify for a loan. Remember they pass income through to the owner of the entities unlike a S corp or C corp which is making money then paying its employees. Though my S Corp could own property it does not for my own estate planning and tax purposes... though I know people that do own property in their corps. My Corp does own some vehicles and other equipment.

[Burke]

LLC is considered as a trust. Instead of providing multiple links that would back up my statements, here's the MOST IMPORTANT link: Look into www.irs.gov

I would like to see some of those links or specific information at irs.gov (lots of pages to sift through there). After two years of reading on this forum and others as well as a few books on the topic, this is the first time I remember reading anyone use trust and LLC synonymously. From my understanding, they are certainly not the same though there are some similarities.

[Jim FL]

Debbie, DAM, and others.......
It sure will be interesting when a lawyer type answers up here.

I do see some confusion in terms here, and perhaps this is what has caused the strife here. (is that how you spell strife?).

Anyway, a trust, and an LLC, are two completely different entities, functioning differently, for different purposes.

In the context we use here at MB's most often, a 'trust', means a 'land trust', which is merely a legal entity for holding title to real property.
Some are revocable, some are not, lawyers can explain the difference.

A trust, for the irs purposes, is a flow thru entity, meaning, they don't recognize it, and therefore, the tax advantages, liabiliaties etc, for anything owned by the trust, fall to the owner (beneficial interest holders) of the trust.

Every property I ever deal with, is titled in trusts, and those trusts, are owned and controlled by other entities, some corp., some LLC, some LP, etc.
Each depends on the plan for that particular portfolio, etc.

So, if you hold title to a property in a trust, and own that trust using an LLC, the LLC has to file with the irs as the owner.

If you hold title in a trust, and hold ownership of that trust personally, then you file with the irs, as the owner of the property.

As far as the irs is concerned, the trust does not exist.
This is not the case with an LLC, an LP or a corp.
Hence the reason these all must have Tax I.D. numbers, and most trusts, do not.

Anyway, just my two cents, perhaps a legal eagle will chime in,
Jim FL

[FirefighterB]

I have been researching this a little bit and I came across a couple different points of interest: (I'm actually surprised how LITTLE info there is on this subject)

First, according to a tax forum thread that I saw (TaxAlmanac (http://www.taxalmanac.org/index.php/Discussion:LLC_vs_S_Corp_in_R.E.)), the consensus is that it is not a good idea to hold property in an S or C corporation. The issues with removing the property from the corporation, as well as paying yourself, employees, investors and the way to break up profits and such seems much more complicated. There are also tax differences.
*Follow the link, read the thread, and click on the link user TDoyle has about half way down that says "Real Estate in a C Corporation" for more good posts.

-Multiple LLCs, one for each property, is also not a bad idea. While more costly and a bit more of a hassle, it shields your other properties from one that you may have a claim against. If you hold all of your properties in one LLC, the person would sue that LLC and the assets would all be in one portfolio, risking loss of all of it. If your properties are in multiple LLCs, then, as Debbie said, they will have to "pierce more layers" to be able to hold a claim on your other assets.

Jim, I'd be curious to hear more about how you structure your LLCs and bring them all under the control of your S-corp, if you don't mind. I am contemplating the same thing, as I plan on putting my eggs in as many baskets as possible by having stock investments, residential property investments, commercial investments, and, likely, some businesses. (You could say I've never had a problem being ambitious)

Anyway, I would like to get a better idea of how it all works from someone that has actually done it and, also, get an idea as to whom I should talk to. Do I need to talk to a RE lawyer, a business lawyer, a corporate lawyer, a consultant, an accountant, a priest, Santa Claus, Mr. Ed, etc.

Thanks for the help. Great thread, too.

[Debbie]

You GOT it!!!!!

You now have better understanding of the trusts (aka entities)! You're getting closer to my level of understanding the asset protection.

[ZNICK]

It's all a matter of semantics really. There's so much conflicting information in this thread that it could really, REALLY confuse someone. (and hurt them if not careful)

LLC's/C Corps ARE entities. Trusts ARE entities. LLC's are NOT trusts.

Comparing a trust and a LLC or C corp is comparing apples and... well... some other fruit that looks like an apple. Yes, they're all fruits, (entities) but a trust and LLC or C Corp are not "one in the same", neither is a LLC or C corp a "type of trust".... neither is a C Corp and LLC one in the same.

Confused yet?

I think we're confusing "entities" and "trusts" in this thread, causing the confusion... a trust is an entity, and so is a LLC, yet a LLC is not a trust.

LLC's, S Corps, Limited Partnerships, Sole Proprietorships, C Corps (and others) are "business" entities. What they all "ARE", are types of businesses. They are all legal business entities that have different officer and taxation structures, as well as other differences. Having said that, they are all "types of companies".

A "business entity" exists as a "organization" (for lack of a better word) that all exist as non-tangible beings. It is typically setup for tax and business organizational purposes.

Joe's Deli is likely a Sole Proprietorship.

Rezcom LLC is a Limited Liability Company.

Proctor and Gamble Inc. is a C corp.

John Doe DBA We Fix Bowling Balls is likely a Sole prop.

THEY ARE ALL ENTITIES. (and, so are you!)

Simply, a trust is when a person, named the trustor, transfers an asset (house, money, whatever of value) to another person, the trustee. The trustee then manages and controls this asset for the benefit of a third person, called a beneficiary. Sometimes the trustor and beneficiary are one in the same, although uses different entities for tax or protection purposes.

It is, again, a type of entity, but not a type of "business".

A land trust holds a piece of property for the beneficiary. The beneficiary has rights to the trust, and it's managed by the trustee... the trust owns the property.

A living trust manages a persons assets. The beneficiary has rights to the trust, the trust has the assets.

THEY ARE ALL ENTITIES. (and, so are you!)

Although one can learn "about" entities and company structures on this forum, you'd be (to be blunt) "a dum dum" to use the advice on this matter without speaking to a qualified professional who knows YOUR personal situation.

These are not decisions to be taken lightly, and although there ARE people on these forums who are 110% qualified to give this type of advice, and give it correctly, unless you open up all of your personal finances and business plans to them, all they can do is give you "ideas" and "suggestions", but not "how to's".

For Mc Donalds, holding their properties in a C Corp is likely the best course of action... for you and me? Probably not... we're likely better with a LLC.

Maybe.

Maybe not.

Again, we're strangers on a forum.

Only take advice about this matter from the guy who's going to talk to the IRS on your behalf or be standing next to you in the courtroom someday.

:SM105:

Z

[SPIVALAW]

Trusts are not entities. I know we all often refer to them as such, but we shouldn't because they aren't.

A trust cannot hold property or conduct business. It is all done in the name of the trustee, as the trustee, on behalf of the beneficiaries of the trust.

A trust offers absolutely no liability or asset protection of any kind other than a possible misdirection or obfuscation of ownership.

A very good attorney friend of mine put it this way. "Think of a trust as a very specific power of attorney possibly with detailed instructions that survives the death of its creator."

It is a way to control an asset at arms length and nothing more.

That is Ga law. AND a revocable trust.
States vary on the trustee being an individual.
Ga requires an individual.
Some states allow a corp trustee.

Also a non-revocable trust is a different animal.

[Debbie]

I now have the responses from an knowledgeable attorney and asset protection expert.

I do not have their permission to use their names nor the exact responses so I will have to use my words from what I've learned from them.

One stated to me that almost all of my responses were accurate. He even like my scenarios of a family tree and layers of clothes. Hence, I made a little boo-boo.

First off, I learned that the statement of "a trust is a trust is a trust" that included all of the entities has been stated in multiple websites but very misleading.

I learned that that above statement is true. However, they are not interchangeable with a trust of any kind.

A trust is NOT a LLC, Partnership or Corporation.

The trusts such as charitable remainder trust, living trust, land trust, irrevokable trust are all with specific instructions for the trustee. Trust is an informal entity. Trust is disregarded by the eyes of the law. Trust's liability exposure falls on the beneficiaries, not the trustee.

Regarding entities.....

Corporations has the same rights and responsibilities like a person does. It is separate and distinct from a person creating it. Corporation's rights and responsibilities are accepted by every single states.

LLC can be treated as a separated or disregarded entity. LLC can be treated as a corporation or not.

Partnerships (limited or otherwise) are not separate entities. They are joined at the hip meaning that the partner(s) are exposed to the liabilities of another partner.

Both gentlemen did mentioned that an attorney and financial planner (or tax advisor) should be consulted to determine which entities are best to hold the properties.

[berk]

I just wanted to add a quick thought to what Debbie added about partnerships. Partners in partnerships are exposed to the liabilites of another partner UNLESS it is a limited liability partnership. In that case, depending on the responsibility of the partner (i.e. general partner or limited partner), some partners may be more protected than others.

[SPIVALAW]

Every state is different.

I have busted many many entities.

[SPIVALAW]

I just wanted to add a quick thought to what Debbie added about partnerships. Partners in partnerships are exposed to the liabilites of another partner UNLESS it is a limited liability partnership. In that case, depending on the responsibility of the partner (i.e. general partner or limited partner), some partners may be more protected than others.

There are
Partnerships (some unintentionally formed), LLC Partnerships, General Partnerships, Limited partnerships, LLLPs, and marriages.

Again state vary.

[ZNICK]

I would argue, and so would many attorneys, that a trust definitely "is" an entity, just like a corporation or LLC is. It's an "invisible" legal entity.

More specifically though, a trust... is a trust. Why argue if it's "like this", or "like that"? It is what it is. A trust, heh.

Here's an analogy:

A trust is a bucket.

When you set up a trust, you get a bucket. You put stuff in the bucket – "funding" your trust. You carry around the bucket, controlling it as you will, pouring stuff out – making distributions – and putting stuff in as you wish. No one can tell you how, when or whether to put stuff in or dump stuff out.

When you die – or when the predetermined date arrives - kick the bucket! – the person you have named steps in to manage the trust, (or the trust might be dissolved) They carry around the bucket and control it according to the directions on the label – the trust document. They might pour out assets on your children for their support, or to their college for education, or to a hospital for medical care. The uses to which the stuff in your bucket can be put are limited only by your imagination and need.

A lot of people use trusts and entities to hide things or do things without someone else (like a bank) easily finding out about what has transacted. You'll find a lot of "gurus" teaching to put houses you take sub-to in a "land trust" so the bank doesn't see the fact it changed hands.

Personally, I don't buy that argument, nor do I do it.

In any case, we all do what we do... yes, all investors should use trusts and/or entities at sometime in your career, but make sure you get the advice from the proper people.

Z

[SPIVALAW]

Gang there are no absolutes.

Example: A Living trust upon your death becomes non-revocable
and thus is an entity with an ID number.

dont argue semantics.
In law there are almost always exceptions to everything, even exceptions.

[SPIVALAW]

PS
Dont fall into a bucket

[higcorpllc]

This is a good thread as it keeps us all thinking about the 'what if's'. when looking a protecting assets from you and other assets some people look at sheer numbers of properties, I tend to look at total value. I tend to cap the net worth in my real estate holing entities at $1,000,000 each. In Colorado that is between 4 and 6 single family homes, maybe 2 small multi family buildings or any one large apartment building or mobile home park. I tier my assets for tax purposes and asset protection purposes. My properties are held in LLC's or LP's and are without exception not held in my name. I manage the entities with a S Corp. The S Corp does everything for the LLC's and bills each LLC or LP as needed. The S corp also manages my lending arms on both mobile homes and my hard money lending arm. The owners of the LLC's can be family members or trusts depending on what the LLC is set up to do.

Remember a LLC or LP will only protect you if you are honest. They buffer you from liability claims but if you do something that is illegal it is my belief you and your other assets will not be protected. We do not let our LLC's or LP's do anything in their own names. They just pass through money while allowing some protection.

as for putting property into trusts, LLC's and LP's... I purchase in my name and then move the homes into the LLC's, LP's or trusts. The entities are just for holding properties and they would not have the ability to qualify for a loan. Remember they pass income through to the owner of the entities unlike a S corp or C corp which is making money then paying its employees. Though my S Corp could own property it does not for my own estate planning and tax purposes... though I know people that do own property in their corps. My Corp does own some vehicles and other equipment.

Jim, how would I add/transfer the deed and/or title to my LLC's name? I've only owned my company for 7 months now.

[ZNICK]

(I'm not Jim, so I apologize if it's none of my bi'ness)

You would likely use a quit-claim deed, but again, your attorney is who should be guiding you, especially the 1st time. Keep in mind that transferring the house into your LLC will have other implications.

The bank can call the loan due. (not likely, but you never know)

You'll have to change the insurance policy, don't forget that!

Taxation may change, and it "might" effect what you can deduct. (I'm not sure, just a thought, I don't know your circumstances)

Why do you want to do this? You certainly won't be able to refi with a company loan anyway.

Z

[higcorpllc]

To be completely, honest, I don't really know why I want to do it. You are all definitely right about seeking professional advice, which I will definitely do -- I simply wanted to get some guidance first.

I'm only 24, and I have realized that investing in real estate is my passion, and I want to do it in a big, legal, professional way. It's really not the money that I am interested in, it's the research, analytics, studying, negotiating, building-friendships that really drives me.

I am going to wait a couple years for my company to get some credit history and for me to pay down on my loans, but I wanted to think ahead on where I wanted to take my life and my company.

So to wrap this all up -- should I sit tight, pay down on my mortgages and continue buying properties in my own name and operate my LLC -S as a property management firm?

[SPIVALAW]

My advice is to delete thsi whole thread.
It would take me a month to fix all this.

[Jim Johnson]

Jim, how would I add/transfer the deed and/or title to my LLC's name? I've only owned my company for 7 months now.

You just do it with a quit claim deed. You to the LLC.

[SPIVALAW]

To be completely, honest, I don't really know why I want to do it. You are all definitely right about seeking professional advice, which I will definitely do -- I simply wanted to get some guidance first.

I'm only 24, and I have realized that investing in real estate is my passion, and I want to do it in a big, legal, professional way. It's really not the money that I am interested in, it's the research, analytics, studying, negotiating, building-friendships that really drives me.

I am going to wait a couple years for my company to get some credit history and for me to pay down on my loans, but I wanted to think ahead on where I wanted to take my life and my company.

So to wrap this all up -- should I sit tight, pay down on my mortgages and continue buying properties in my own name and operate my LLC -S as a property management firm?

Based on your signature you live in a lot of places or you are well traveled. :11doh:

I started about your age (22) for the same reason, passion for a interesting area.

I love real estate.

My advice to you is to look for someone you admire and learn from them or copy them in business practice.

The legal advice you get on legal matters on a forum is worth what you pay for it.

Would you ask a fat guy about weight loss? A skinny guy about weight lifting or body building?

If you are in this for something "but really not for the money", I suggest you rethink. Money is not bad. You can do lots of good with money. People living under bridges don't donate to charity or help their family and loved ones financially. Read the book The Millionaire Mind.

Asset protection is a complicated subject. States vary and every circumstances in your life varies what you should do. Courts and legislature change laws everyday. In addition every entity has a different tax consequence. The tax code is complicated and a moving target as well.
Don't let this scare you, just don't ignore it.

People who have never prosecuted or defended a lawsuit are just talking theories. They are formiing their opinions on what the heard or maybe read somewhere. Lawyers who don't practice law and just sell forms are probably worse.

Personally I disagree with some folks about buying property in your personal name. Especially in GA. LLCs aren't that old (and established like some entities) and they are being tested in the courts every day. The fact that you owned the property and then transferred it (for free) into an entity is just another weakness in the link to pierce it. "Ten dollars" consideration is still not adequate consideration. If you already own the property then make the transfer.

I think you should start with the property ownership at purchase in an entity.

For 25 years (damn now you know my age) I have bought 100s of properties in entities and to make the lender happy just personally signed or simply guaranteed the mortgage. Usually (over 50% of the time) I buy subject to or use owner financing when I can.

The main way to succeed in real estate, including buying, selling, borrowing or renting... is with good communication and people skills. Actually that applies to anything in life.

Just starting out, I suggest you read theses classics:
- How to Win friends and influence people. (Dale Carnegie)
- The Richest Man in Babylon (George S. Clason)
-Think and grow Rich. (Napoleon Hill)

Best of luck!

Make it a great day!
Howard

[SPIVALAW]

www.irs.gov is a great source to study taxes and tax savings strategies.

For an easy read and current info and a reasonable price, I like these books.

http://www.quickfinder.com/

[trumpnextweek]

I have just completed the courses for the Certified Financial Planner professional program through the College For Financial Planning in Denver.
These courses are offered throughout the country at many many universities, as well. I took mine online through the CFFP.

The course in taxation has helped me enormously in understanding real estate transactions. I recommend it to anyone serious about investing.
On the other hand, it has made me conscious of how easy it is to make a mistake. It is easy to make a mistake because the tax laws change so often, and also because the laws can be quite intricate.