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Updated over 14 years ago,
- Real Estate Investor
- the villages, FL
- 3,497
- Votes |
- 5,700
- Posts
estate planning for well to do or wannabe well to dos!
I was asked deep in a buried thread to answer a couple questions about my reply in a recent post. here is the start.
I post a lot about parallel programs. There is a reason I do that. It is the best of both worlds and I can. Have 2 completely separate entities, and I mean separate, with no possible cross contamination. Yes, it can be done. In the one side, you enter all your free and clear property. 1 or 100 doesn't matter.
In the other entity , you buy ALL the stuff you can afford-use owner financing from seller. there are even some on BP! These are your hedge against inflation. Make sure they are all together and all flow together.
You now have 2 entities that you "control" and neither touches the other OR you. You are not the owner, just the manager.
If market goes up with runaway inflation or stupid government, I win. I have tons of property increasing 10-20% per year(yes it did) and on a 10% down payment acquitision, when it goes up 20%, I make a 200% return on my down. It adds up fast. 10's of thousands quickly turns into hundreds of thousands or more. Your mortgaged batch provides write off from depreciation to help cover some of the net from free and clear properties. Then, if you feel the need, take profits by selling on owner financing at the new monstrous values.
Now, in the bad market that may catch you by surprise.. Just walk away from the mortgaged poperties. No contingent liability and you still have your untouched free and clear cash cow. If you put it together correctly, you'll have beat the game, imo. You need some funds, knowledge, real estate license, (or in the business) Irevocable Trust with you as manager but NOT the bennie., couple other entities, several insurances, PERFECT attorney , accountant and reserves. That is most of it.
I hit the high points on this and left out a lot, I'm sure. This has worked marvelously for many years. Make sure your attorney includes "a poison pill". That is the cou da graw(misp).
If you get this far, you'll be ready for econ 601! It consists of adding a couple other layers on top of what you already have.
Disclaimer- I'm not an attorney, accountant, realtor, college grad, tall, handsome, or "rich". Consult what you need to do it right. I have lots of horror stories I could share from stupid........(any of the above listed. They'll cost you lots of money. Remember,
"No one will ever pay your fine or serve your time" Rich