Titling Property in a minors name

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Hello all:

I've been reading here for years; learned a lot!

I finally decided to buy some land off the foreclosure auction to hopefully one day have the cash to flip houses. Auction is coming up in about two weeks and I will be buying a plot of land in the 5k range. I see them on eBay for about 9k. With all fees I stand to walk away with 2-3k in profit. I am going through all the preparations (Don't worry I know a few people that do this on a regular basis) and have come across the dilemma of titling. How would I title the land? I want to avoid at all costs using a family members name as things are constantly shaky. I am thinking of making a corporation (YoungInvestor LLC) and making myself the owner of the LLC. I know LLC's can own property but can a minor operate them? I am only 16 and with this I would be frequently buying properties off the auction and selling them. I know there are attorneys on here and I need some advice. I am in upstate FL if it matters.

Thanks
YoungInvestor

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From what I gather there generally aren't age requirements for starting an LLC.

However you're not allowed to have your own eBay account :

http://pages.ebay.com/help/policies/identity-underage-users.html
"You must be at least 18 years old to be an eBay member.

A person under 18 can use an adult's account with the permission of the account holder. However, the account holder is responsible for everything done with that account. "

YoungInvestor said:   Auction is coming up in about two weeks and I will be buying a plot of land in the 5k range
Live Auction at a physical venue ?

I'm not sure on the legality, but will advise you to consider any fees and/or tax situation that might arise out of owning the property through an LLC.

Also, you didn't ask, but I'll advise anyway: be sure to consider your carrying costs into your financial plans - insurance, property tax, sales/marketing expenses

Not sure exactly what your questions are ("I want to avoid at all costs using a family members name as things are constantly shaky."), but you can look into FL Land Trust.

No worries, good luck!

First of all, thank you to everyone who replied. My big paragraph is a tad bit confusing so let me clarify -

My primary question what can I start an LLC? It seems I can.
Other question was can I operate the LLC? By this I mean can I execute agreements in the LLC's name? So for example can I sell this plat that was titled in the LLC? Or do I need to involve a third party who is over the age of 18?

I do have access to an eBay account that is legitimate and in the name of an adult.

The auction is inside the courthouse. I've attended one of the auctions last week with a family friend who does this for a living and he explained the process of bidding, paying, etc.

Taxes are only 60$ a year on the lot, not sure if they are higher if it's in the name of an LLC. My numbers are considering 6% realtor fee if things go south and I need to sell quickly. Most marketing will be eBay or Craigslist. I have no clue about insurance. I totally left that part out thinking it was not needed. Do I really need it if I will hold the property short term?

Another thought that popped into my mind just now was what state is it best to start the LLC in? Florida LLC fees are 160$ a year and I recall some other state was notably cheaper, any advantages in going with FL?

Thank you so much for all the help, you guys are great.
YoungInvestor

Since the LLC will be doing business in FL, you have to do a FL one (ok you can do some other state, but then your state will most probably charge you the same yearly fee as an out of state registereed LLC) meaning you will have to do 2 returns per year. Save yourself the double effort and register in FL.
You should call FL state office, and ask the LLC question (formation and carrying on business at age 16).
You do want to consider insurance, because if someone gets hurt on the land they can sue and legal fees are costly.

FYI... RE comission on land is not 6%, more like %10; not that any of these numbers mean much on such a low entry property.
Also "Land" and "sell quickly" is not synonymous, grasshopper.

There are cost benefits in FL Land Trust, such as title, doc stamps.

You regurgitating land in Cape Coral, or Flagler.

I hope you are using more than eBay listings to establish a market value for this property...

Kudos to having $5k to put into a piece of property when you are only 16!

Maybes we need to have an Alt-FWF forum.

OP is not 16. OP is not new.

JaxFL said:   FYI... RE comission on land is not 6%, more like %10; not that any of these numbers mean much on such a low entry property.
Also "Land" and "sell quickly" is not synonymous, grasshopper.

There are cost benefits in FL Land Trust, such as title, doc stamps.

You regurgitating land in Cape Coral, or Flagler.


Close to one of those.. I checked with an attorney/friend and he said I can make an LLC and the to setup an Operating Agreement where I am 99% owner and someone over 18 (brother) is 1% owner. He said that would allow him to manage transfers of property.

I am using recently sold MLS data to determine value. eBay values are a little higher.

Germanpope why the hell are you coming in here accusing me? Get a life. Find a way for me to prove my age and I will.

Is it acceptable to make the name of my corporation my first and last name? Is this a good idea?

I'm going to go against the herd here and tell you about the advantages of doing this as a
Minor .

You might have an advantage in that your dealings may be void able at your option. If this doesn't work out , you can say "oh sorry I'm a kid" and undo the deals, if it does work out and makes profit you just keep quiet

Is this a common activity for 16 year olds in your neighborhood?

Crazytree said:   Is this a common activity for 16 year olds in your neighborhood?

Not at all! Most 16 year olds have no plans beyond high school.

@ YoungInvestor… Well, I agree with most of the posters here that you won’t be able to buy a property at the age of 16 on eBay. You will have to wait for 2 more years in order to achieve the right age to buy a property for yourself. However, it’s really great to note that you are planning your finances and assets at such a young age! Good Luck!

No one has ever asked for my age on eBay except when purchasing from the "adult items" category .

Is he "supposed to be" using eBay if he is under 18? No. But no one ever asks a buyer for their age and they will gladly take his money and title the property in his name

Even at the courthouse auction , unless he looks very Young it's doubtful they would id him

SIS is right. since you are an infant, you can get out of any agreement you enter into that is otherwise legally binding if you were an adult.
but people know this, so they dont like to enter into agreements with infants. so dont be surprised if people wont enter into a contract with you.
but once the contract is complete, then its voidable or enforceable at your discretion my friend.

with respect to LLC, this is no doubt the best way to go, as opposed to s-corp, etc etc.
limited liability and flow-thru profits, is the reason why.
how to create an LLC and where to get more information? The secretary of state for your state (not john kerry, but for your STATE) handles LLC formation.
Go to their website, look for requirements, fees, forms. etc etc.
The paperwork is pretty easy, you will need to file articles of incorporation, state your business purpose, etc etc.
For business purpose, put "any legal business purpose".
Get a PO box while you are at it, for anonymonity for petes sake.
A lawyer can give more information and guide you, if you feel you might muck things up.



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