Forming LLC and Funding

[Nick Brown]

Hi all,

I'm about to start purchasing buy and hold properties using private money from family/friends. Is the best route to form an LLC myself and then have them fund the LLC as a private loan? Can I just file the LLC with legalzoom and have my investors write checks to fund the company? Also, let's say they loan me a combined $500k and I plan to purchase a $1M mult-family (5+ unit) how difficult would it be for me to obtain the additional $500k from a bank?

I plan on sitting down with a real estate attorney anyways, and I'm really not concerned with pinching pennies during this process since I want everything to be by the books, but figured I would gauge the forum.

Thanks in advance