All Forum Posts by: Dominic Bouchard

@Gurpy Ont Partnership, in your situation, seems way better. 

• Less paperwork (with Corp you have to file a resolution each time you take a decision/action)
• Pass through entity is better on tax at this point (cash flow strategy will be seen as income as opposed to capital gain)
• Less expensive to manage 

Hope that helps.

@Lannie Dulin I know you mentioned Atlanta but just in case you need someone in CA (sometimes they need to work in teams) I can point you to experts attorneys (real estate friendly). 

Let me know!

Cheers

@Ivan Lai Right. The cost question is to evaluate your loss should you decide to terminate the contract. 

Look what the clause regarding termination of your contract indicate. A 2 years contract should state when/how or if it's possible to terminate. 

To me, a company allowed to raise its bargained share without renegotiation is shady at best. You should be able to change company if initial terms are not respected "under reasonable circumstances." 

Note: this is not a legal opinion but only a common sense argument.

You should quickly check that with a lawyer. And I'd like to know what you decide for your next move. I'm assuming you're not the only one in this situation...

Hope that help!

@Ivan Lai What's the cost of switching with the competition? 

Also, what's the contract terms (length, the extent of services provides)?

@Carl Talley 

The first question is can your property be divided to get a fractional loan/mortgage? (city and municipality laws need to be checked here)

If the bank can't repay itself in the case of default, (because the property can't be divided), you won't qualify for financing. (in most case)

I'm afraid if this is the situation, you couldn't touch the equity unless everyone (brother and mother) portion secure the loan as well. (no limited protection)

On the other hand, if you can divide the property, then this sort of financing can be made. You'll need to check with the bank though. 

@Nick G. I like the "unless specific conditions are met" which I think it's exactly the case here.

What @Danny Lee is referring to is when a seller back out for a reason out of his control or that would put him in deep trouble if the deal goes through. (bankruptcy or else)

What the judge might see in this situation is it's easy for the investor to find another deal (although frustrating) but disastrous for the seller to pursue the deal.  

Sometimes "contract laws" must be tempered to individual's situation. In fact, I'm surprised the lawyer went through with the claim pass this stage...

For a lawyer, it's easy to check the case law and see the chance of success...(in most case like this)

@Keith Nelson 

In this particular case, your real estate property would be protected due to the separate entity. In court, you would prevail. 

But, he can still try to claim a lien to your property inside the LLC (nothing hold him back from trying) and tied up your equity until the lawsuit is settled/resolved.

What you're referring to is assets protection (through anonymity) which is possible through either LLC, S-Corp, or a mix of LLC + Trust.

The simplest is to register the LLC under a nominee's person instead of you (certain state allows that).

That being said, this is a complex legal scheme and would recommend talking with a lawyer for that.

Hope that helps.

Hi guys, I need your input on this one.

We're planning (our startup) on starting a *private* community (or group) enabling RE investor to reach out directly to lawyers for probate, foreclosure or any kind of deal they usually get through their own network/practice. 

Maybe put some legal Q/A there also.

Any feedback? Thanks

@Amar Khaira The fact that you don't take out any money from LLC don't matter.

LLC (registered as a partnership) is a pass-through entity meaning the income will show on your personal tax report. (as opposed to a C/S Corp)

Of course, this number need to be divided by two (unless stated otherwise in the formation document) since there is two member. 

Given your number, saying that you both have to report $600 for tax purpose is an accurate ballpark. 

Hope that help!

Hi guys, I need your input on this one.

We're currently operating a legal marketplace connecting RE investor with expert solo or boutique RE lawyers with a tech-driven platform.

We're planning on starting a *private* community enabling RE investor to reach out directly to those lawyer for probate, foreclosure or any kind of deal they usually get through their own network/practice. Maybe put some legal Q/A there also.

Any feedback?