All Forum Posts by: Jeffrey Fecko

@Colleen F. Hi Colleen,

So in this case there were three children who were trusted a house from their parents. They have collectively owned the house under the trust for about 4 years now. One of the children is looking to sell their 1/3 share of the house. One of the two remaining siblings is thinking about buying them out so that it would now be:

Sibling 1 has 2/3 share

Sibling 2 has 1/3 share

Sibling 3 has 0 share

I’m not entirely sure what kind of trust but I believe it was a living trust.

The big factor in this decision is that if it were possible to avoid any capital gains associated with buying out sibling 3 that would be ideal. My initial assumption is that the house could go to an LLC owned by sibling 1 and 2 but I assume dissolving the trust would trigger capital gains.

Is there another option?

If there is a house owned by a trust and all three trustees currently have ownership of it. Is there a way to buy out one trustee without triggering capital gains taxes?

@William Sing thank you very much William!

My Wife and I are looking to buy an investment property with her brother in the next year or so. The idea is that we each contribute 1/3% of the startup cash needed. What is the best way to structure our company legally? Is a traditional mortgage still a route we can take if we create some kind of company that doesn't have any existing cash flow? 

I am considering investing in a duplex with another partnership but I am unsure the best way to go about setting things up legally should I proceed with the deal. My fiance and I are looking to invest with another couple who reached out to us about a duplex deal they found. However, I'm unsure the best way for us to set things up legally should we proceed. We would likely need to finance through a traditional mortgage. The idea I have is that we each form an LLC. These two LLC's then start a third LLC as "partners" and that third LLC is essentially the owner of the property. Is this even legally possible? I'm not sure what the best way to go about it is. I'm trying to protect ourselves as much as possible and also want to be able to make my own investments in the future without this other couple having any control over them.

Any advise is greatly appreciated

My parents recently mentioned that they are thinking about investing in real estate themselves. I have wanted to get into real estate for a long time but haven't been able to save up the money yet. I am trying to come up with a partnership agreement that would be a win win for all of us. Does anyone have successful stories? Ideally I would be using very little of my own money up front but down the road I am willing to invest much more than my parents.