A buy-sell agreement is a legally binding pact among partners or stockholders under which some agree to buy the interests of others upon a triggering event, such as death, disability, or retirement.
Co-ownership refers to any of several legal arrangements by which property is owned by more than one person. This includes forms such as Tenancy in Common, Joint Tenancy, Community Property, Partnership, LLP, and LLC.
Conduit tax treatment allows income to pass through an entity without additional taxation, making certain entities preferred vehicles for real estate ownership as they distribute income and losses directly to their owners, maintaining the earnings' nature.
An entity is the legal form under which property is owned, impacting the benefits and risks associated with owning real estate. It can vary widely and includes structures like corporations, individual ownership, joint ventures, limited liability companies (LLCs), limited partnerships, partnerships, and real estate investment trusts (REITs).
A General Partner is a member of a partnership whose liability is not limited. In any standard partnership, all partners are general partners by default, whereas a limited partnership must have at least one general partner.
A Limited Liability Company (LLC) is an organizational form recognized in many states, offering limited liability protection to its owners and potential tax advantages of a partnership, making it an attractive option for real estate ownership.
A Low-Income Housing Limited Partnership (LIHLP) is a partnership formed to fund and manage housing for low-income tenants. It offers investors potential returns primarily through tax deductions and credits rather than significant annual cash distributions.
A partnership is an agreement between two or more entities to enter into a business or investment together, where each partner may bind the other within the scope of their arrangement, and all partners share liability for the partnership's debts.
A passive investor is an individual who invests money into a business, project, or property without taking an active role in managing or operating it. This hands-off approach allows investors to potentially earn income while leveraging the expertise and efforts of others.
