holding title to rental property

[Larry T.]

Hi everyone, I am brand new and I can't find the answer to this if it has been addressed already.

What is the best way to hold title to rental property?

One that keeps anonymity from tenants and provides a degree of protection from lawsuits and least hassle?

LLC or land trust? An LLC to hold title and then another one for property management?

Thank you very much in advance for any responses.

[Michael Rossi]

It is generally accepted that the LLC is the preferred entity for holding rentals. Land trusts do NOT provide liability protection.

Good Luck,

Mike

[Larry T.]

Thank you very much Mike.

Can I ask you another question? If I have cash to make an offer on a building, what is the quickest close you would say is "safe" to offer on the contract? i.e that allows for inspections and review of prior rental agreements with current tenants? And how long should the option period be? Longer than 10 days? I want to go fast but not put myself at risk...but at the same time I am making a low offer with cash and want to include as quick a close as I can so that they will accept the offer.

Does a 30-day close mean that it is not a quick close at all?

Thank you very much for your very valued advice.

[Michael Rossi]

manana1,

How quickly you can close depends on how quickly YOU can get everything done. I would consider a 5 day closing to be good for a all cash deal. I've closed in 3 days before. However, if this is your first deal, you might want to make the closing in 2 weeks subject to all inspections and disclosures from the seller being complete.

Good Luck,

Mike

[Account Closed]

30 days would be long for an all cash deal. Granted most people offering all cash know how to do their own inspection or can get a contractor in within 24-48 hours.

Some sellers would be fine with 30 days. You can gain some advantage if you use a large escrow amount. Given the contingencies there is not a lot of risk. The escrowed money shows you are serious if the property checks out.

Try an offer that works for you. The only problem will be if you get the offer rejected without comment as you will not know what about the offer was not acceptable to the seller.

Remember, it is your money. You can take it to another property. The seller has to sell that specific property. Let them tell you what will work best. You can even ask them before making an offer. It does not mean you have to agree with what they say.

Note that any info passed from owner to agent, to buyer's agent to you is generally suspect or completely wrong. Chinese whispers, etc.

John Corey

[Larry T.]

Wow, what good advice, I am so glad I came here. So of course I have to ask, for a 100,000 offer on a building that they are asking 120,000 for, what is a good amount of escrow/earnest money. I am very serious abpout the property and would not walk away unless there was some very serious structural issue.

As for a fast close, I will have my inspector ready to go the next day after they hopefully accept the offer. I think 2 weeks is as fast a close as I could do...hope it is fast enough for the seller..

Thank you all so much for responding.