Questioning Whether the Value of Your Property Will Rise…or Fall? Part II
http://www.articleword.com/articles/1489/1/Questioning-Whether-the-Value-of-Your-Property-Will-Riseaor-Fall--Part-II/Page1.html
Bryan Benson
When it comes to real estate investing, I highly recommend information from Ron LeGrand. For valuable information regarding investing in homes visit <a href="http://www.RonLeGrand.com">RonLeGrand.com</a>. You can also find useful investor resources in the free newsletter at <a href="http://www.MillionaireMakerNewsletter.com">MillionaireMakerNewsletter.com</a>
By Bryan Benson
Published on 04/23/2008
In part one you had just purchased your property. You had it titled in your name rather than in your LLC. You were going to bank to get a loan. You also have hired an appraiser to figure out the true worth of the home. Now you need to title it.
Questioning Whether the Value of Your Property Will Rise…or Fall? Part II
Part II
In part one you had just purchased your property. You had it titled in your name rather than in your LLC. You were going to bank to get a loan. You also have hired an appraiser to figure out the true worth of the home. Now you need to title it.
Keep this in mind. You can actually transfer it into an LLC or land trust the day after you buy it. But you are personally guaranteed the loan. That is really the only part I don't like about this deal. But they are giving you a lot of equity (you have since found out since the appraisal). You have a good market. Think about it. You have everything working for you... you are going to live in it and that means when you sell it; you probably won't get taxed on it.
Can it get any better?
It is even a new development so the prices are still constantly going up. The best part-the builder will be in there for at least another two years building. Now this can be good and this can be bad. But either way, if you plan on living there, you should be prepared to live in this house for a while if you must.
And if you are going to stay - then what a great place you are in!
What do you care? You are getting a good deal on the house - go buy it!
Now you may be wondering how soon you can go in and put it in an LLC. Can you do this immediately after closing? Or do you have to wait until make sure they have already filed the paperwork first?
Whoa!
Don’t forget-filing the paperwork is not going to change anything. You can transfer that title into a land trust a lot easier. And a land trust is not an entity that requires a tax return like an LLC. What does this really mean?
What I am saying to you is, in other words, I wouldn't have to put it in an LLC and then transfer it. I would just put it into a land trust and quit worrying about it.
Make you the beneficial interest! Think about it. It will cost you almost nothing.
Let me put it to you this way. If you put it in a land trust, and somebody talks you out of it. You can bring it back out as easy as you put it in. You can't hurt anything. And the bank can't call the loan due.
In part one you had just purchased your property. You had it titled in your name rather than in your LLC. You were going to bank to get a loan. You also have hired an appraiser to figure out the true worth of the home. Now you need to title it.
Keep this in mind. You can actually transfer it into an LLC or land trust the day after you buy it. But you are personally guaranteed the loan. That is really the only part I don't like about this deal. But they are giving you a lot of equity (you have since found out since the appraisal). You have a good market. Think about it. You have everything working for you... you are going to live in it and that means when you sell it; you probably won't get taxed on it.
Can it get any better?
It is even a new development so the prices are still constantly going up. The best part-the builder will be in there for at least another two years building. Now this can be good and this can be bad. But either way, if you plan on living there, you should be prepared to live in this house for a while if you must.
And if you are going to stay - then what a great place you are in!
What do you care? You are getting a good deal on the house - go buy it!
Now you may be wondering how soon you can go in and put it in an LLC. Can you do this immediately after closing? Or do you have to wait until make sure they have already filed the paperwork first?
Whoa!
Don’t forget-filing the paperwork is not going to change anything. You can transfer that title into a land trust a lot easier. And a land trust is not an entity that requires a tax return like an LLC. What does this really mean?
What I am saying to you is, in other words, I wouldn't have to put it in an LLC and then transfer it. I would just put it into a land trust and quit worrying about it.
Make you the beneficial interest! Think about it. It will cost you almost nothing.
Let me put it to you this way. If you put it in a land trust, and somebody talks you out of it. You can bring it back out as easy as you put it in. You can't hurt anything. And the bank can't call the loan due.