What are the concerns with investing in Out of state property with an In state LLC?
For example... my brothers and I are starting an LLC in Louisiana. One of them lives in North Carolina. If we were to find a good deal in North Carolina, would it be disadvantageous to us to purchase that property under the Louisiana LLC?
The laws governing a property / transaction will be those of the state where the property is located, not the entity. That's one issue.
Check with your business attorney to see if a "foreign" entity needs to be registered to do business in NC.
@Justin Tortorich @David Dachtera is right. Typically, an LLC must be registered in the state it will do business. If you have you Louisiana LLC, you figure out what North Carolina's foreign entity registration is and follow it.
I did this using a CO LLC buying property in IA. It is easy and quick and is sometimes also cheaper than standing up a new entity in that state.
The bigger problem is financing . I assume you want to have leverage and not planning to buy a property without a mortgage ..
Most lenders won't be willing to provide you with financing for a recently established LLC..
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