How to Transfer Parent's Residential Properties to my Company?

[Account Closed]

Hey everyone. I'm getting intro real estate investing. I have a 6 figure salary and great credit (785+). In Philadelphia, PA, my parents have 3 residential properties, one of them having an attached commercial unit that currently has a hair salon client. All of the props are in my dad's name. I'd like to transfer all of them to the ownership of my company, which I have not yet setup. 

My parents could be partners in the company, but preferably, my company would create a subsidiary company to specifically hold these 3 properties with my parents as partners; in the desired scenario, a business partner (non-family member) and I would own the main company. If this makes sense, the main company would own 30% of the subsidiary while my parents own 70% as partners for their existing equity in the properties.

Right now, my main concern is figuring out how to transfer ownership of the property to a company, regardless of the structure. From there, I can figure out the structure. Is any of this easy to do with a brand new company? Any other thoughts and strategies would be appreciated.

Thanks in advance.

[Lynnette E.]

Originally posted by @Account Closed:

Originally posted by @Gregory H.:

Even the most expensive property management firms charge 10% of rents per year to do very comprehensive management, which probably works out to about 1% of the property's value per year. I manage 20 properties for my parents in Philadelphia & Buck counties, and that is what I charge them. Asking for 30% of the value of the property to do management is beyond absurd, and honestly may be challenged by the IRS as they may reclassify it as a gift. If your parents simply want to do it as part of their estate planning, I wouldn't include any non-family members as it is essentially your inheritance.

I'm not asking for 30% for just property management; I don't even plan to do the property management myself. I'm asking for 30% as a business partner. It's not really an ask because at the end of the day, my money is my parents' money given they depend on me.

 Sounds more like your parent's money is your money as you are taking 30% of their property value and providing them with NOTHING in return.  You are not even doing the property management so whoever does it will be getting paid from the company, further reducing  your parents potential income from their investment.

You every hear of a guy named Clayton?  You may end up being his roomie some day...

When my parents had rentals and were elderly, I helped them managed them for years and years.  Never asked my parents to even get reimbursed for gas or time.  Would have never, ever thought of trying to take 30% of their value as some sort of gotcha entitlement.  MY goal was to make my parent's life better, not to enrich myself off their assets.  

What you are proposing does not sound in the best interest of your parents.