skklaw.com || Real Property

ATTENTION Individuals 60 years and older!! Have you heard of reverse mortgages? In 1993, New York State created, by statute, reverse mortgages to be used in connection with property (homes) located within New York State. A reverse mortgage is a loan against the equity individuals 60 years and older have in their homes. Borrowers may open a credit line that can be accessed for money at will. They may also choose to take a lump sum. No repayments are expected and one can stay in the home for life. The bank is paid back, with interest, from the proceeds of the sale of the home when it is sold. One word of caution - some people and firms appear to be preying on seniors by charging outrageous "brokerage" fees for advising them on how to obtain a reverse mortgage. Don't get caught in this "brokerage" trap. Simply pick up the phone and call your real estate lawyer for inexpensive advice.

ATTENTION sophisticated real estate investors!! In 1994, New York State created, by statute, the allowance of limited liability companies (LLC's). An LLC is a hybrid business entity, which combines the limited liability aspects of a corporation with the pass-through tax attributes of a partnership. The LLC may be particularly advantageous in real property ventures. Traditionally, real estate ventures have been formed as partnerships. Given the choice between a corporation or a partnership, the partnership may oftentimes be a better tax choice. However, the LLC form of business may become the primary form of real estate ventures because it offers the best of both worlds: limited liability for all members of the LLC and all the tax advantages of a partnership.

If you would like to know more, call your real estate attorney.