How do you structure your wraps on your IPs?

Viewing 5 posts - 1 through 5 (of 5 total)

lifeX
Member
@lifex
Join Date: 2004
Post Count: 651
July 28, 2004 - 1:22 pm
A company I control collects rent from my tenants which is then paid to me as market rent. This is done for tax minimisation reasons.The properties are in my personal name. (excess positive cash builds up in company and is taxed at 30%).
I want to wrap one of these properties.
1. Can I still flow the Principal and Interest wrappee payments through the company?
2. Does a loan have to be between me and the wrappee, or can the company lend the money to wrappee.(ie: who gets credit provider licence?)
3. Does anyone use a different structure when wrapping a property already in their name.
(Now that I have learnt a little, All future IPs will I purchase will be owned by a trust which I think is a heaps better set up)
[smile]
lifexperience
WallFlower
Member
@wallflower
Join Date: 2004
Post Count: 205
July 29, 2004 - 5:54 am
LifeX is your company acting as trustee for your trust? Everything is done in our company name LCP also,although have not bought a house in our personal name.
Where’s my bl**dy book ??
lifeX
Member
@lifex
Join Date: 2004
Post Count: 651
July 29, 2004 - 10:18 am
Wallflower,
I havent set trust up yet. I may have current company as trustee temporarily, BUT ideally i have been advised it is better to have a company trustee that is separate to the company that may be operating which could be sued itself. Thats another $1500 to set up of course.
LCP, whats that?
In what name is your property? A trust, company or other?
Check your PM’s wrt Book[curtain]
lifexperience
WallFlower
Member
@wallflower
Join Date: 2004
Post Count: 205
July 29, 2004 - 10:55 am
LCP Licensed Credit Provider.
If you’re looking at a JV will you be getting a unit trust?
BUT ideally i have been advised it is better to have a company trustee that is separate to the company that may be operating which could be sued itself
Please explain that!! Seperate to what company?
Thanks mate, between you’n’me we’ll give Dale G a run for his money…
lifeX
Member
@lifex
Join Date: 2004
Post Count: 651
July 29, 2004 - 12:17 pm
LCP, cool.
I mailed my credit provider application yesterday in companies name.Did you have any trouble being approved?
Separate companies: one purely as trustee of trust with property (not created yet). and one company handles all the daily going onerings of running IPs. I have some co-housing set ups, and i have already had one tenant threaten to sue cause a tenant I placed in there became violent.
It would be nice to safeguard assets against the unexpected.
Yep, Unit trust. His equity, my groundwork.
lifexperience