Updated: Jan 21
IT’S NEVER TOO EARLY TO START INVESTING FOR YOUR CHILDREN!
As parents/guardians, we naturally want our kids to be in a better position than we were. So, what’s better than giving your kids the gift of OWNERSHIP even at an early age? Did you know that your child can be a property owner even at a young age? Yes, your Kidvestor can truly become a real estate investor. Although a child cannot legally be on title under the age of 18, they can be listed as a partner of an LLC of which the LLC owns property! So, what are the steps?
Form an LLC.
You can form an LLC by visiting your local Secretary of State office or form your LLC online. Having an LLC will help protect your personal assets.
Draft an Operating Agreement
This is a legal document that details the owners of the LLC, the percentage of ownership for each owner, how the business will be governed int
ernally, and how it will function.
Include your child/children as a minority owner of the LLC in the Operating Agreement.
As the parent you will be majority owner while giving a percentage of ownership to your child/children. This gives them ownership of the
property without any decision-making power of the majority owner. Once they turn 18 (or depending on the age requirements of your state) you can assign your percentage of ownership to you child to make them a majority owner of the LLC .
Buy a property in the name of your LLC.
Now that you have your documentation in order, now
it’s time to buy property! Once you have found an investment property that fits your family’s long term goals and provides the cashflow you desire, make sure you purchase the property in your LLC. If you aren’t sure where to start regarding purchasing your first or next investment property, start now by taking this Free Real Estate 101 class