hi guys, i’ve been a member of property investing however a highly inactive one. im looking to change that and am needing some assistance.
i have two options: to go on my own or to team up with my parents.
my parents already have a few properties however they’re negative.i have come up with some ideas on how to make them positive but i dont know if it’ll work… so i need giudance there.
i also need some advice on trusts… i know steve’s new book mentioned trusts and the benefits.. does ne1 out there work under one how complex is the setup and what the costs and criteria in establishing one…
i feel overwhelmed with info… jusy dont know where to begin.
eh][eh][eh]cheers
tylonI teamed up with my parents from the fact that they lent me money to get started rather than me investing with them. Depends on your strategy but you may want to do your own thing to keep the process clean!
I think if you have ideas on how to make the existing properties positive cf, I would go with that. You gain experience and it is always good to do something for your parents.
Another upside is that they are probably very willing to give you some starting capital if they see that their investment is making more money.
And the money really does ‘stay in the family’.
To set up a trust you should really talk to a good accountant. Tell him what you plan to do and ask him on the best structure. My accountant gave me two pages of pros and cons. The main ones were:
Pros:
– Asset protection
– Income streamingCons:
– Setting Up Costs (about $1500)
– Yearly Running Costs (about $1500)For me it was the right thing as I can also stream the income from my company through it and make sure that I do not pay more than 30% tax.
Good Luck
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