multiple owners property questions

[LODI QUACKER]

What is the best way to set up a camp that will be owned by several people?

Needs to..

1. be protected form family members ie... during a divorce.

2. be protected from ourselves.. ie.. one member not being able to sell without others approval.

3. Members need protection from liability on the property.



Will we have to set up a LLC? what are the fees associated with this?


Thanks
Lodi.

[gps4]

llc would be easiest and least expensive.

the operating agremeent would need to specifically address how ownership interests would be bought and sold and what would happen if a member were to become involved in a divorce.

[Jelly]

tjhe first two are going to be tough...

[djw442]

As others have said an LLC will be the simplest and cheapest option. The fees to set up an llc are low, the cost will come on the fees of an attorney to write an operating agreement. You can write your own, but I would have an attorney put it together.

[SHANE704]

i would have it put in the operating agreement that when someone wants to sell out that the LLC as a whole has option to buy at fair market value....that way yall will buy the person that is selling's interest, then yall can turn around and sell it to whomever yall decide. there are a couple different ways to setup a llc, im not sure which would be best as far as protection in divorce, but i would definitely seek a lawyers help when setting it up

[Hambone]

1. be protected form family members ie... during a divorce.

Interesting question. Mississippi is an equitable distribution state and assets acquired during a marriage are divided by the court. You can't contractually set up ownership in a way that takes that power away from the court. It might be possible to set up a trigger in the LLC agreement that forces a sale to remaining owners upon the filing of a divorce - that would protect the others, but the proceeds received by the divorcing member would still be subject to distribution. This possibility leaves open all sorts of problematic issues, though, and it might not be workable at all.

2. be protected from ourselves.. ie.. one member not being able to sell without others approval.

This one is much easier. You can set up your LLC agreement to prevent a sale without approval of other members, or one that gives the non-selling members the right of first refusal to buy the selling member's share on stated terms.

3. Members need protection from liability on the property.

This is called "liability insurance"....as much as you can reasonably afford.

[LODI QUACKER]

property is in AR laws the same?

Would like to set it up so that if one party wants out, they would be entitled to the money they put in, nothing more nothing less.

Dont want to get in on a situation where some ex wife makes ol boy sell his intrest and it gets appraised at a hell of a lot more than dude has in it therefore other folk left in the deal are the ones getting the shaft.

Is there anyway to split something up and several people pay for it, but at the end of the day, it cannot be sold or changed at all?

[Seymore]

3. Members need protection from liability on the property.

This is called "liability insurance"....as much as you can reasonably afford.

Yes, liability insurance is part of the equation. I think the question is how to prevent incidents happening at the club from attaching to ones personal assets. This is done through corporations and LLC.

My recommendation. See an attorney. What you are talking about can be done. However, it needs to be worded so that it is valid. No I am not an attorney so I'm not advocating for business for the profession. I am saying that if someone wants something done right then there is a right way to do it. I had an attorney friend who told me one of his clients used one of those internet legal websites to do something and then came to him when things didn't go just right. He told them to deal with it using what they had done would cost 3 times as much as if he had handled it from the beginning.

[Hambone]

Seymore, my statement about getting liability insurance was based upon an assumption that an S-corporation or LLC would be the entity owning the land, but I didn't expressly say it. I definitely agree with your point about having an attorney do the setup work.

[JMallard]

We see all kinds....dealing with just land loans and most rec property this has changed alot over the years. The best one I have seen lately is a "dead man switch". Life insurance dedicated to the LLC that will pay out that person's portion of the interest in the land and at that time, no hiers become involved. LLC "dues" pay the life insurance. Usually are bigger, more valuable tracts/lodges. All see a buyout clause, where if you want out a new appraisal is conducted and the remaining parties pay you a discouted portion of your % ownership. Not FMV due to the undivied interest......Family properties are the worst.....My advice.....don't buy anything with anybody. EVER.

[Jeff]

My ultimate reccomendation....

Don't buy property with other people. Try your best to buy it on your own, then lease to your buddies and if they upset you kick them out. I think many of us have been down this road, owning it yourself will save TONS of hassle.