Corporate Home Purchases

[RoboVil]

So, I came across a house which is owned by a corporation. How is that possible in a 55+ community?

[retiredguy123]

Anyone can own a house in The Villages. The over-55 restriction only applies to the residents, not the owners.

[Altavia]

There are reasons an individual may want to establish an LLC for a home purchase.

In Florida, property ownership details are readily accessible through online public records. By buying property under LLC, only the Florida-based LLC will be identified as the property owner, safeguarding in that way, the confidentiality of the owner's investment.

They offer investors, including liability protection, federal tax flexibility, ease of estate planning, and potential probate avoidance.

But there are complications...

A Guide To Buying A House With An LLC | Rocket Mortgage (https://www.rocketmortgage.com/learn/buying-a-house-with-an-llc)

[tophcfa]

Technically 80% of homes must have one titled deed holder 55 or older. Is that enforced and how is a good question? Many investors put rental properties in a LLC.

[retiredguy123]

Technically 80% of homes must have one titled deed holder 55 or older. Is that enforced and how is a good question? Many investors put rental properties in a LLC.
The over-55 restrictions are stated in the deed restriction document. My deed document only specifies that one "resident" must be over 55. It says nothing about the deed holder or owner of the house. Can you provide a source that requires the house owner to be of a certain age?

[Papa_lecki]

So, I came across a house which is owned by a corporation. How is that possible in a 55+ community?

Very common, husband and wife are the officers in the corporation, limits liability.

[tophcfa]

The over-55 restrictions are stated in the deed restriction document. My deed document only specifies that one "resident" must be over 55. It says nothing about the deed holder or owner of the house. Can you provide a source that requires the house owner to be of a certain age?

Just looked it up, my bad and you are correct. It’s one occupant, not a deeded property owner. Makes one wonder how in the world that could possibly be monitored and enforced? Just another worthless internal deed restriction without enforcement.

[OrangeBlossomBaby]

An 18-year-old can buy a house in The Villages. They can't live there until they're 19, but they're legally old enough to sign a contract and therefore legally old enough to buy a house here. They can buy it for their grandparents as a present if they want. Whether any 18-year-old WOULD buy a house here is another matter, but the fact remains - they can.

[Dusty_Star]

So, I came across a house which is owned by a corporation. How is that possible in a 55+ community?


I looked at a house that was owned by a corporation. Not an LLC. An actual corporation that owns, sells & rents out housing as its business. I think it was based in California, but I am not remembering the name.

[petsetc]

Just looked it up, my bad and you are correct. It’s one occupant, not a deeded property owner. Makes one wonder how in the world that could possibly be monitored and enforced? Just another worthless internal deed restriction without enforcement.

Monitored when Villages IDs are issued. Enforced is really not a conversation since I suspect the percentage of homes with at least on resident 55+ is in the mid to high 90s. Just look at your own neighborhood, how many homes do not have at least one 55+.

[OrangeBlossomBaby]

I looked at a house that was owned by a corporation. Not an LLC. An actual corporation that owns, sells & rents out housing as its business. I think it was based in California, but I am not remembering the name.

There are corporations that buy property to use as guest homes. If a board member is coming from another state, or the CEO of the headquarters somewhere else - comes for a periodic long weekend meeting or convention, they'll put them up in those guest homes.

[BrianL99]

Just looked it up, my bad and you are correct. It’s one occupant, not a deeded property owner. Makes one wonder how in the world that could possibly be monitored and enforced? Just another worthless internal deed restriction without enforcement.

The Deed Restriction merely mirrors State and Federal Law, which requires 80% of the homes be occupied by a person over 55.

[CoachKandSportsguy]

So, I came across a house which is owned by a corporation. How is that possible in a 55+ community?

Ours is owned by a corporation, an LLC.

The Villages does not sell to a corporation, but sells to an individual who then places the house into an LLC to then be operated as a residential real estate corporation.

that's how we did ours from the developer. Of course, we are over 55 so all is fine.

google certified lawyer :throwtomatoes:

[manaboutown]

An LLC is a limited liability company, not a corporation. They are different and distinct types of legal entities. LLC vs. Corporation - What is the difference between an LLC and a corporation? (https://www.mycorporation.com/learningcenter/llc-vs-corporation.jsp#:~:text=Is%20an%20LLC%20a%20corpor ation,offered%20by%20starting%20a%20corporation).

The primary reason residential real estate gets put into ownership by an LLC is to avoid personal liability by the member(s) (owner(s)) of the LLC. Holding residential and investment real real estate in LLCs is common.

Of course corporations can own real estate as we all know.

[TeresaE]

So, I came across a house which is owned by a corporation. How is that possible in a 55+ community?

Could have been a reverse mortgage. If the owner(s) have passed away then the reverse mortgage company would be the seller.

[Captainpd]

20 post and the first 3 answered the question. Why do people continue to post the same answers?

[RoadToad]

20 post and the first 3 answered the question. Why do people continue to post the same answers?

Sense of Community partisipation?

Keyboard practice?

Boredom?

Fun? lol

[Dgodin]

There is no way to stop them. Corporations are buying houses all over America, outbidding individual buyers. Part of the reason why buyers cant find houses. In the future many people will be permanent renters of these corporate homes.

[Haggar]

Ours is owned by a corporation, an LLC.

The Villages does not sell to a corporation, but sells to an individual who then places the house into an LLC to then be operated as a residential real estate corporation.

that's how we did ours from the developer. Of course, we are over 55 so all is fine.

google certified lawyer :throwtomatoes:

Does an LLC or a corporation get a homestead exemption? Does an LLC get the profit exclusion on the sale of the home (if qualified)? Does a tax return need to be filed- a corporate return, a partnership return, Schedule E?. In law, LLC's and corporations are considered separate entities.

Have you explored these ramifications?

[Indydealmaker]

So, I came across a house which is owned by a corporation. How is that possible in a 55+ community?

Even a child can OWN in an age restricted community. The restrictions are on residents.

[Vermilion Villager]

I looked at a house that was owned by a corporation. Not an LLC. An actual corporation that owns, sells & rents out housing as its business. I think it was based in California, but I am not remembering the name.

I would not be surprised. I recently saw an article that said almost 30% of home sales in the US last year were purchased by corporations. If you think about this it is pretty scary for our children… Housing markets stay extremely tight due to high interest rates. Boomers won't sell and that squeezes the market. High interest rates are due to inflation, and inflation has been found more times than not to be due to businesses gouging prices. Publix is a prime example. Last year their profits increase to 49% over 2022… And that was a record above 2020.
With high inflation and higher interest rates younger people cannot afford homes. They still need shelter. Corporations are cashing in on this and will turn the next generation into a generation of home renters instead of home owners.....Welcome to the new America!!

[Vermilion Villager]

Does an LLC or a corporation get a homestead exemption? Does an LLC get the profit exclusion on the sale of the home (if qualified)? Does a tax return need to be filed- a corporate return, a partnership return, Schedule E?. In law, LLC's and corporations are considered separate entities.

Have you explored these ramifications?
An LLC could get a homestead exemption depending on how the principles have it set up. I doubt very much a corporation could get a homestead exemption. One of the stipulations of the homestead exemption is you have to be a resident of the state and this has to be your "primary" residence.

[Vermilion Villager]

20 post and the first 3 answered the question. Why do people continue to post the same answers?

To get under someone's skin??? (it appears to be working) :1rotfl::1rotfl::1rotfl:

[Vermilion Villager]

There are corporations that buy property to use as guest homes. If a board member is coming from another state, or the CEO of the headquarters somewhere else - comes for a periodic long weekend meeting or convention, they'll put them up in those guest homes.

I highly doubt that is the case here in The Villages. There is no major production plant or any other type of business that a CEO or a executive board member would be flying in to stay long-term. Plus these corporations are buying "multiple" homes not just one, and they are renting them out, usually as long term (12 months or more) rentals.

[Villager1234]

Go Villages4rent There are dozens of rentals available from Vine something

[Aces4]

There are reasons an individual may want to establish an LLC for a home purchase.

In Florida, property ownership details are readily accessible through online public records. By buying property under LLC, only the Florida-based LLC will be identified as the property owner, safeguarding in that way, the confidentiality of the owner's investment.

They offer investors, including liability protection, federal tax flexibility, ease of estate planning, and potential probate avoidance.

But there are complications...

A Guide To Buying A House With An LLC | Rocket Mortgage (https://www.rocketmortgage.com/learn/buying-a-house-with-an-llc)



Might the LLC information be available when Open Corporates dot com, with no spaces, is searched?

[CoachKandSportsguy]

Does an LLC or a corporation get a homestead exemption? Does an LLC get the profit exclusion on the sale of the home (if qualified)? Does a tax return need to be filed- a corporate return, a partnership return, Schedule E?. In law, LLC's and corporations are considered separate entities.

Have you explored these ramifications?

A great accounting quiz, though I would not hold a personal home in an LLC, not worth the complexities, etc. If the home is in active use for a business, which ours is, then the LLC is a better deal for the write offs. The most interesting question is the gain on sale, if there is a gain.

Does an LLC get a homestead exemption?
since it is not our primary residence and we are not FL residents. . i think not. would help though with the average increase in taxes as it is double the rate of the homestead. . .

Does an LLC get the profit exclusion on the sale of the home?
not sure of the reference to "the profit exclusion". Are you referencing the home owner first 250K type gain on sale? I would think not, but not a bridge to cross unless a sale.

Does a tax return need to be filed?
Need to be filed? dunno, but I would think so. We file an a partnership return every year as an LLC.

I hope this answers the CPA quiz. .

[Haggar]

Under the corporate transparency act most small llc’s and corporations have to file a beneficial ownership information report to the financial crimes unit Of the us treasury by Jan 1 2025. If new LLC or corp within 90 days of filing. $400 penalty per day

[Red Rose]

Replying to BrianL99. I think you have that backwards. 80% of residents need to be Over 55. 20% can be under 55 but at least 19 years old.

[Haggar]

Bad news. Homesteading only applies to a natural person(s). From what i’m reading llc’s don’t qualify. Llc’s don’t typically quality for the profit exclusion on a primary residence. I would recommend to my clients they put their home into a living trust and get an umbrella policy

[BrianL99]

Replying to BrianL99. I think you have that backwards. 80% of residents need to be Over 55. 20% can be under 55 but at least 19 years old.

Sorry, I must have been typing in a mirror. Thank you.

The 19 year old restriction, has nothing to do with Federal or State Law, that's a Village's restriction, unrelated to "age restricted housing" laws.

[badkarma318]

Could have been a reverse mortgage. If the owner(s) have passed away then the reverse mortgage company would be the seller.

Thomas W. Selleck was listed as the owner.

[CoachKandSportsguy]

Bad news. Homesteading only applies to a natural person(s). From what i’m reading llc’s don’t qualify. Llc’s don’t typically quality for the profit exclusion on a primary residence. I would recommend to my clients they put their home into a living trust and get an umbrella policy

Totally agree. .

Unless there is an active business on the property, with 100% of the goal of the property, I would never recommend an LLC method of ownership for a house for the owners. The shield from liability is not worth the cost for a residential owner.

Kind of like Social Security, if you need it take it, but if you don't need it, don't take it.

AND thanks for the heads up on the beneficial statement requirement.

good discussion.

former finance guy

[kansasr]

So, I came across a house which is owned by a corporation. How is that possible in a 55+ community?

Within The Villages there are over 3,500 homes that have "LLC" in the Owner's Name.

[Haggar]

I called the Sumter county property appraiser's office and they confirmed that if the primary residence is in a LLC or Corporation that the home loses its homestead exemption, the 3% cap on the value and the portability on the home. And I believe the profit exclusion on the sale of the home.

Why would you do this?