Thread: Update on Real Estate Investors & LLCs

Thanks for keeping us informed about this Diane.



Oh, and Phoenix in July? Really? July? UG. Couldn't it be on... say.... the Oregon Coast?

Diane, are the reports you offer on this page from your Loopholes book? I already have it on order...just checking. BTW, you totally, totally rock for writing that book. So much to learn

No - these are specialized reports to the issue of refinancing and protecting your property.

this may sime elementary, but am I correct in assuming this does not effect LOC's?

Originally Posted by kurtyordy

this may sime elementary, but am I correct in assuming this does not effect LOC's?

Wow, not elementary at all. I was all set to answer it and then second guessed myself. I need to make a call tomorrow during business hours. Good question. I'll get back to you.

Does this affect personal residence and actually buying a property? Because you mention it only affects refinancing. Not buying. And does it only affect LLC purchaes. I'm not sure what an LP is.

I am asking Because I am looking at REO's to buy one as my personal residence in my own name.

LP = Limited partnership. Sorry for the shorthand.

If you buy a property and hold it forever in your own name, then there is no issue. But, my argument is (1) when it appreciates or terms improve you want to have the flexibility to refinance and (2) you should protect the equity.

I've been advised to use a separate llc for each property. How does this translate to this trust sandwich concept? Multiple llc beneficiaries? Surely not multiple trusts? Great idea. I will contact you about this.

Can anyone explain why there is not any information on the web or in books about a "Trust Sandwhich" is this some sort of hybrid Trust that was just created. I am skeptical about trusts that have yet to be tested in court.
Also can someone share the articles with us stating the new rules of Freddie Mac and Fannie Mae, I havent been able to find them. It really is a bad situation for LLC's if you cant pull equity out...but the original reason you formed an LLC is still intact...which was to protect your personal assets from litigation. Surely we can find some creative way to get around this.