I am looking at a few 30-60 unit commercial apartment buildings. I want to form a LLC for each individual commercial apartment. Would it complicate things if I were to bid on some apartments, get a bid accepted and then form a LLC and buy it using the LLC at closing. I am waiting to form a seperate LLC until I have a property actually under contract. Should I form a seperate LLC now, or can I wait until I get an apartment building under contract?
Would this complicate the process or is this how it is usually done?
TMCG is correct. Buy it and/or assigns and transfer it into your newly chosen LLC at closing.You may want more asset protection than just the LLC. Start w/a trust w/ the LLc as beneficiary and a FLP as member of LLC…A bogus tenant suit will have a hard time finding you…Hope this helps :smile
I’m using a HML to initially buy and rehab the property. Then in 3 months I will be refinancing. How about buying it in my name than forming a protective entity like a trust or LLC and refinancing using that trust or LLC? Any problems with getting the property refinanced in the LLC or Trust?
Say you are making offers on REO properties (that can’t be assigned), do you create the LLC BEFORE you make the offer. (i.e: Jewels, LLC) , get bid accepted, and then SELL that LLC to a buyer (i.e: wholesaler) ?
Furthermore, I was told to make sure the name on the closing docs do NOT have anyother name except the LLC you are using. That way the “Mr BigShot Bank Attorney” won’t get leery and back off. Defaulting on the deal, and leaving you with your pants down! :anon
I mean, technically you’re NOT assigning the contract, just selling the LLC right?!
Am I right on this? SOMEONE please help me on this…I want to start making offers to Banks thru my re agent, but I need this little bit of info nipped to move forward without complications. Who do I call? Lawyers? CPA’s? HELP PLEASE!! Any clarification is welcome!! :help
If you form an S Corp and transfer property from your name to S Corp, what steps follow?
Will mortgage company be notified, if you have a mortgage? Will they allow this/ or can they keep it from happening?
I am in a situation in which I went to purchase under S Corp, was told they could not accept, (under 2 years old). Was also told that Mortgage comp. would not agree, because it was a new company. So, I put it under my name and now want to transfer it.
What are the ramifications if any? And what steps should be followed?
Thanks to all for your help.