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Written by : Fred Kostyla |
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when buyers are looking at making a purchase with us it's natural for them to want to understand what am i buying you are acquiring an interest in real estate when picasso identifies a home that it wants to buy it sets up an llc a limited liability company and that llc actually acquires the home the llc has a total of eight ownership interests or eight shares owners buyers have the opportunity to buy one share two shares three shares and picasso facilitates those transactions what happens then is that picasso slides into the role of program manager and it's picasso's job to oversee matters like scheduling maintenance and otherwise ensuring that the property works the way the property needs to work and that everything is ticked and tied and that the owners are delighted however if the owners ultimately are dissatisfied the owners can vote and the owners can remove picasso that's something that we structured intentionally you know we should need to earn the right to serve these owners each and every day a question we frequently get i'm co-owning a home with other people how does liability work llc stands for limited liability company and by virtue of that you're insulated from liability there are costs associated with a second home taxes insurance maintenance those sorts of issues and we pass that directly through to the owners and they pay for that can i sell my shares the answer is yes you are required to hold it for at least a year but after a year it's freely transferable you can sell this on the open market just as you would any real estate transaction the most important part of the picasso culture is the lead-in to our mission which says we're here to enrich lives we're trying to accomplish something important for people and enable them to access second home ownership in a way that otherwise would not be affordable wouldn't be possible wouldn't be available for them and that's really what we're about at picasso you
Thanks for your comment Silas Benno, have a nice day.
- Fred Kostyla, Staff Member
steve schlegel here clients ask me if i own a piece of real estate should it be in an llc and i say definitely don't let it go into your own name keep it in the llc because you want that liability protection even if there's no buildings on the property someone can still come on the property and get hurt when you buy the property you hopefully got title insurance when you purchased it but you don't want any title issues that may come up down the road that title insurance didn't cover to come back on you because you have that responsibility for your whole lifetime if you hold the title you'd like that to be in the llc the llc will go away one day so yes we want to do that but what if i own five properties can i put all five properties in the same llc you can but i don't recommend it and the reason i don't recommend it is because i don't want to have a lawsuit on one property taint the other four properties i'd like to keep them separate so i'd like to keep all five of those properties each in its own llc and that makes some sense segregate that liability but i don't want to file five tax returns one for each llc so how do i get around that well in that situation if you held those five properties and five llcs we would form a master llc up here and that master llc would own each of those other five and you would be the owner of the master llc in doing that each of the five underlying llc's is considered a single member llc because it's owned by one member the master in that situation the irs says only the master has to file the tax return so you can own five different properties file one tax return and still segregate the liability from each of those properties one from another it's a great way to take advantage of the legal limitations on liability and to avoid filing a bunch of tax returns and incurring all of those costs i highly recommend it as a way to own multiple pieces of real estate
Thanks WabonaJ your participation is very much appreciated
- Fred Kostyla
About the author
I've studied bilingual education at Villanova University in Villanova and I am an expert in interlinguistics. I usually feel complacent. My previous job was harbor, lake & waterways police I held this position for 28 years, I love talking about distro hopping and lamp making. Huge fan of Scott Yancey I practice alpine skiing and collect records.
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