All Forum Posts by: Dave Hill

Finding a suitable contractor, if you need a good quality result, is to locate two or three Design Build remodeling company and request a referral to the sub-trade that they use, such as a Roofer. Usually they only work with proven sub-trade performers who are experienced, good with creative cost saving solutions and have the knowledge and skills applicable across a wide spectrum of their trade.  Or if not a roofer, then any other sub-trade. Siding, Painting, Mason, etc.

Checklist for a typical re-roof, a roofers considerations.

Access: for roofing tear-off demolition into a dumpster and distance from building, if debris will have to be packed put.

Roof loading for new roof materials  using a conveyor or by hand via ladder.

Protection required from falling debris to ground level plantings, customer property and the building structure, itself.

Condition of the roof deck including nailing, rot damage repair, or re-sheathing option if not code compliant.

Material Package:  Underlayment, fasteners, perimeter edge metal flashing, Composition Shingles, attic vents, penetration flashing at skylights, brick and/or metal (B) vent chimney, power mast base and plumbing vent boots, etc.

Pricing:  Materials vary a great deal depending on type, quality and quantity specified.

Labor:  Time to tear-off old roofing and it's disposal. Roof loading, by hand or supplier charge to load. Installation of new roofing materials, subject to the variables of the roof design, especially the roof pitch, valleys, hips, venting, skylights and dormers.

Contractor mark-up percentage relates to the labor variable usually.

For example here's what a basic and simple 2500 sf (25 Sq) re-roof would cost in our north west market: Labor including burden @ $135.00 + Material package $175 + Mark-up on labor 67% $90.00  Total $400.00 sq

Job Bid Amount $10,000 plus tax.

Is there a rental agreement between the tenant and land trust trustee?

As I understand it, and I'm not a professional:

If the Land Trust has been set up as a disregarded entity it is treated by the IRS as a pass-through entity meaning no tax  or filing at the  entity level. 

The income and deductions are reported by the trust's owner, in this case the WY LLC.

I know nothing about TN FAE-183 taxation.  However it seems reasonable, since jurisdiction physically rests in that state, and provided rental income is taxable there,

that the state would require the owner "out of state" recipient be taxed accordingly.

Hope this is helpful.

Land Trust planning for privacy, asset protection and to minimize FIT

1. Grantor forms an irrevocable Land Trust and conveys WA rental house into it.
2. Trustee is a CA corporate entity.
3. Beneficiary of the Trust is a NM LLC set up by Grantor as incorporator but not as member.
4. The LLC has only two members, sons of the Trust Grantor.

Does this arrangement allow pass through income to sons, and will they receive a stepped up basis when they inherit the LLC via a grantors separate living trust? Is the built in privacy provided by the land trust and LLC asset protection compromised in any way?

As an experienced contractor, forget the 2 ply Built up Roof (BUR) that's a maintenance system at best.  Consider a torch applied APP modified bitumen instead.   To be code compliant the roof needs to be sloped a minimum of 1/4" per lf, with built in crickets to direct the rain water flow to the drainage locations, if required because of the roof configuration.

Now about tapering (building the slope) there are three basic methods:
1.  Carpenter approach, that is frame it and sheath it with plywood.

2.  Design a tapered insulation system using Expanded Poly Styrene EPS and use a recover type board over the top to separate the insulation from the torch applied membrane.

3.  Similar to 2 above, except using Poly Iso Cyanurate to gain a much higher R value, if that is an important consideration.  Poly Iso is available in stock panels to do this.

Roof venting is an important consideration, either into and out of an attic space or the joist cavities - you need both intake and exhaust.

Now about single ply roofs which come in various thicknesses, I'm considering 45mil products here which is the usual residential thickness sold - TPO is the cheapest but usually costs more than a torch applied APP.  PVC costs about 10% more in our market and the top of the line KEE (a modified PVC with woven and sealed reinforcement is 30% higher.  They all require high quality workmanship skills with TPO the most difficult to handle because of its stiffness.  Robotic welding is required on all seams exceeding 10lf by manufacture convention.  If the contractor doesn't have a robotic welder don't do business with them. 

More help is available in terms of advise if needed, just let me know.

Thanks for the responses.

Since posting, I've researched this topic further on the internet and referred to Warda.

Conclusion:  Since it is a trust based upon common law and not specifically excluded under RCW it must be legal in this state by implication, provided the trust is formed in accordance with trust law.

Observations:  The information provided in the link above, states '... a "Land Trust" is not an entity that can legally hold title to real property.'  It doesn't go on to explain or justify the statement.  Perhaps there is case law refuting my conclusion as I doubt there's code specifically excluding a land trust from holding title to realty.  In one respect I agree, the trust instrument can't hold legal title or course - in a land trust it is vested in the trustee.