All Forum Posts by: Mike Clark

Nah, not really.

The whole FLP thing for us was just as much about estate planning. We have two homes my brother and I rent from the LP, one rental, one bare lot we rent to a company for parking/storage, and some land we bought to hunt on outside Rosebud.

I like San Antonio, so much more character in the older homes than Houston. My inlaws live there, and have a condo in Port Aransas.

My FIL dives right into the more complicated stuff, but like I said, we use it mainly for other purposes.

Well, we just went ahead as rentals. That has been fine, after expenses, and depreciation, we havent had to be too concerned with creating a tax liability.

With the larger gifting options through 2012, we'll probably be able to stop worrying about it alltogether, as the ownership will be transferred completely by the end of the year.

Thanks for asking!

...and go to sleep. 3:58 am?!?

Actually, I have a four month old, so I understand.

OK, so a promissory note will handle the terms of the loan.

So, a warranty deed records the lien, not the completion of paying the debt? It was initially my understanding the warranty deed conveys that the debt has been paid...

Father and two brothers form a Family LP. The LP buys a few investment properties. The brothers wish to use two of them as their personal residences. If leased from the LP, the entire rent amount would be taxable income for the LP. If mortgaged, only interest. So, the two brothers will buy on a contract for deed from the LP.

Do the properties need a general warranty deed completed and recorded, and also a contract for deed to document the debt for tax reasons? Also, can the mortgage be set up as a unloaded loan, so that interest/principle is the same every payment instead of being front loaded?

TIA.

Im looking at a nice house, golf course community, 10 years old, 2900 sq ft, 5/3.5/2 . Understand, this is in Houston, so the swings aren't anything like the inflated values that crashed on the east/west coasts, etc.

House was at 226k(tax value) two years ago. I can probably get into it at 175-180k.

The problem is, it backs to a busy street, nothing big, two lanes and a turn lane, but its a growing area, so it will be widened in 5-10 years, I assume. There is easement area to give up, so it wont encroach on the property, and there is a tall privacy fence, 8 ft at least.

In your experience, how much cheaper will this house need to be vs. interior comps in the same neighborhood to move it later???

Houston is a huge town, and cheap first time home buyer type properties can be had in most zip codes outside of Beltway 8.

Beware of Royce Homes leftovers. They abandoned several neighborhoods that are 10-20% built. They look like b- horror movie film sites.

So, come on in, the water is fine. I bought my first about a month ago, and scour MLS every day for the next.

Im sure you are aware, but flood insurance is a good idea in Houston. I dont care what the maps say, everything can flood in this town, given the right amount of rain.

Well, I got some resistance on adding another return. Things are complicated enough as is. I think we are just going to make sure we are VERY well insured with a larger than normal umbrella liability policy.

If you guys see a problem going in this direction, let me know.

Thanks again.

OK, so, no matter what, any entity will have the same members. I just want to protect the LP assets. So, if I understood, you are saying that we need an LLC, but outside of the LP?

So, we will just have to deal with an extra return each year?

First, let me introduce myself. I was a mortgage loan officer for several years, then moved in auto finance. I was laid off about a year ago, and work in accounting at our Family business, a commercial Heat Treating shop( service company for oilfield parts).

For estate planning, we started a family LP about a year ago. The money in that Lp is funding the rent houses we are getting into. My old boss, and the two other investors I know, use disregarded llc's for their property(they dont have similar LP's, just use the llc's as pass throughs to their personal return).

Should we buy the homes in the LP name and leave it at that, or start a llc within the lp to hold the homes?

I assume an addtl llc would help protect the other assets within the LP, which are substantial.