Legal Question in Wills and Trusts in New Jersey

Re: Acquiring Property Through an Attorney - Remaining Annonymous

If you are are suggesting public financing for the 5 million needed to buyout the other parties, I would think a "prudent " seller would determine the buyer (ie-you). The formation of a corp. is not necessarily the secret you may believe it is; also, have you checked with your cpa regarding a corporation or an LLC. You have many questions here, I suggest you proceed very carefully AND WITH THE ADVICE OF COUNSEL. I am familiar with the complexities of these transactions (having completed a multimillion transaction just yesterday) and I urge you to pace yourself carefully. The question of whether the acquisition would be enough ... this sounds like a "lender" issue; in my experience most lender issues are determined as a result of the lender conclusion of your financials, and your relationship with the lending institution.

Re: Acquiring Property Through an Attorney - Remaining Annonymous

First, you should be up front with your fellow beneficiaries. Honesty works best.

Secondly, you should immediately obtain help from a competent tax and business attorney.

Third, you should consider establishing a LLC to acquire the property. Please see my website at http://www.taxesq.com/choice.html for help with selecting the best form of business entity.

Re: Acquiring Property Through an Attorney - Remaining Annonymous

Your question makes no sense. First you say you want to purchase a property through an attorney so that the others do not object. I do not understand why the presence of an attorney would keep the others from objecting. If you mean that you will remain anonymous and only the attorney will be the one the others see, why are you then complaining about the "hassle" to create the situation that you are requesting. Your question makes no sense as stated. However, such a major transaction almost requires attorney involvement. Even the most sophisticated buyers use attorneys in these types of situation. Seek counsel immediately. Good luck! Rob Gleaner

Re: Acquiring Property Through an Attorney - Remaining Annonymous

Your question raises a number of issues, which I'll address briefly, one by one:

1. In the course of settling an estate, there will be formal or informal accountings. All of the beneficiaries will have to approve distribution of estate assets, either way. You may want to wait until the apartment complex has been distributed to you and your fellow beneficiaries. The timing may be controlled by getting federal and state estate tax clearances.

2. A complex such as you describe must need management. Is there a professional management company in place, taking care of the running the property, collecting rents, paying bills, maintaining the property, etc.? It is critical for the property value that good management be continued during the administration of the estate.

3. Purchase of such a property is complex, and even if you are an experienced real estate developer/manager, you should have legal counsel throughout the process.

4. Trying to maintain anonymity is difficult, because state records about the formation of a corporation can be searched by the public, and ultimately, your identity could be ascertained.

5. Many owners of investment real property form separate corporations for each property they own, for many reasons. If you are contemplating this acquisition, you should also consult with your tax adviser or CPA, who will probably recommend taking title in a corporation or LLC, even if you are not concerned about shielding your identity.

6. Owning a property through a corporation or LLC does not mean that you must have an attorney involved at all times.

7. Banks and other mortgage lenders will need property appraisals supporting the loan you would need to buy the property. They would also be concerned with your experience and track record in owning and managing such properties, as well as your personal credit history. Commercial loans will often require a higher cash investment by the buyer than you may be used to for, e.g., a home purchase.

8. You will also need sufficient capital to cover the due diligence (investigations) you should make before taking title to real property, your legal and accounting fees, insurance, licensing, closing costs, and a cushion for management of the property after you take title.

9. You need not be personally present at the settlement, provided that you have good representation and have taken care of satisfying all the requirements of the title insurance company and governing authorities prior to the settlement.

As you can see, your plan to acquire the property requires time and effort, and you should have good legal and other professional counsel in such an undertaking.

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