LLC

Florida Brings About (Not Enough) Change to its LLC Statute

by Clint Coons | May 14, 2011

Last Summer the Florida Supreme Court created a legal Tsunami that washed over the legal community when it handed down it’s opinion in Olmstead v. FTC. In that case, the FTC had obtained a judgment for more than $10 million against Olmstead for operating a credit card scam. The FTC obtained an order requiring the [...]

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Real Estate Law

Raising Money for Your Real Estate Investing in 2011

by Clint Coons | January 6, 2011

“It is natural to indulge in the illusions of hope. We are apt to shut our eyes to that siren until she allures us to our death.” – Gertrude Stein. For many real estate investors, the thought of raising capital to increase their purchasing power is an irresistible allure. However, how one goes about this [...]

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Real Estate Law

Six Clauses for Every LLC – Part 2

by Clint Coons | December 10, 2010

The purpose of this post is to provide investors with some guidance in creating their LLCs. So far, I have covered three of six points that in my experience have created the most problems for LLC owners. These six in and of themselves are not an exhaustive list, but a good start toward creating an [...]

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Real Estate Law

Six Clauses Essential for Every LLC – Part 1

by Clint Coons | December 2, 2010

A properly drafted operating agreement can greatly enhance the liability protection. An improperly drafted operating agreement will do the opposite, leaving creditors a superhighway of access to the assets. The issue is how to determine if your operating agreement is properly drafted or not. Most LLC operating agreements that I review fall into what I [...]

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Real Estate Law

The Series LLC Experiment – Looking for Guinea Pigs

by Clint Coons | October 28, 2010

When it comes to asset protection, I always tell my students and clients that segregating dangerous assets from each other is a sound strategy to limit overall risk exposure. Best practice dictates that each asset should have its own entity. For many people this could translate into to a multitude of business entities. For example, [...]

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Real Estate Law

Will Your Real Estate Asset Protection Stand up in a Fight

by Clint Coons | October 14, 2010

How much protection can you truly expect to receive from a Corporation or Limited Liability Company as a real estate investor? If you listen to some purveyors of asset protection tools the answer is complete protection. If you ask an attorney the answer is “it depends.” Many investors are frustrated by the attorney answer and [...]

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Real Estate Law

Can Nevada or Wyoming Protect Your Real Estate Investments in Another State

by Clint Coons | September 1, 2010

I received an email from a client recently who was concerned about some information she received from an promoter of Wyoming and Nevada LLCs. She was told that a Wyoming LLC registered to conduct business in California will provide greater protection from charging orders than a California LLC. I hear this same argument time to [...]

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Real Estate Investing

Don’t Get Double Taxed! Never Do This with your Corporation

by Clint Coons | August 17, 2010

A dilemma every real estate investor who buys and sells property for short term gain faces, is how to proceed if the property does not sell. Most of my clients understand the importance of using a corporation for their short term investing to avoid the dreaded “dealer” classification. This usually requires the utilization of a [...]

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Real Estate Law

Setting the Record Straight on Florida LLCs

by Clint Coons | August 10, 2010

These past two weeks have resulted in an influx in calls from concerned clients regarding their asset protection structure in light of the Olmstead decision out of Florida. I myself have written a few articles on this case over the past year and a half. (My latest can be found here on BiggerPockets) However, as [...]

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Real Estate

How to Protect Yourself as an Investor with Insurance

by Jason Hanson | June 20, 2010

A while back I was at church and I saw this good looking girl wearing a red dress. The first thought that popped in my mind was “look at the legs on her.” The second thought was that I’m going to talk to her and get to know her better. So, I stroll up to [...]

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Real Estate Wholesaling

How to Close REO Wholesale Deals (Part 4 of 5): Using an LLC

by Stephani Davis | October 1, 2009

Today’s article is part four in a five part series, where I will be shedding light on the various methods available to close REO wholesale deals and get around the “No-Assignment” clause that most banks include in their addenda.

In weeks 1-3 I have discussed using simultaneous closings, quitclaim deeds, and double closings to get your REO wholesale deals to the closing table.

This week, I will be talking about using an LLC to wholesale your REO properties to your end buyer.

Using an LLC to Wholesale

If you decide to use this method to close your REO wholesale deals, you will be making your offer to the bank in the name of an LLC, creating the LLC if/when the bank accepts your offer, and then selling your membership/ownership in the LLC to your end buyer in exchange for your wholesale fee. When using this strategy, you are not selling the actual property to your end buyer, but rather the LLC which owns the contract to purchase the property.

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Real Estate

Which is the Best Business Structure for Real Estate Investors?

by Greg Boots | April 8, 2009

Image by Oregon State University Archives via Flickr Anyone who has closed on a purchase of real estate knows one simple fact: the legal profession kills a lot of trees. In a typical closing with traditional financing, all of this paperwork may seem excessive, but it is a necessary evil. The multitude of pages is [...]

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Real Estate Deals

Series LLCs and Real Estate Investing: A Primer – Look Before You Leap, Though!

by Greg Boots | March 25, 2009

By now most investors are aware that Limited Liability Companies (LLCs) are designed to help insulate the owner (member) of the LLC from the liabilities that may arise on an investment property held within the LLC. What has drawn confusion and massive amount of debate is whether or not an investor should create a Series [...]

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Real Estate

The Asset Protection Misconception: Why Insurance Alone Isn’t Enough

by Greg Boots | March 18, 2009

“Why did my financial advisor tell me that in order to achieve asset protection for my investment properties, I only need a general liability policy?” This is a question I am consistently asked by investors when I am speaking throughout the country. Don’t get me wrong, I am a huge advocate of insurance, but in [...]

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Real Estate Investing

Land Trusts and Asset Protection, a Primer

by Greg Boots | March 11, 2009

There has been much published in regard to land trusts. However, many real estate investors are completely oblivious to the fact that the land trust, in and of itself, provides absolutely no asset protection. Don’t get me wrong, land trusts are great vehicles for privacy, but privacy will only take you so far. You must [...]

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