Well today I stumbled across this wonderful website and had to sign up as soon as possible! I spent quite some time reading old posts in regards to my question, but I still need some advice specific to my situation.
Well me and one of my accomplices have been talking for a while now, and finally decided to get into real estate. We are always talking about business so we do have a good relationship and are able to separate social life from our future business life.
With some research and talking to a few connections that I do have back home decided to start an LLC. After doing a lot of reading I am confused on when and if we should even start an LLC. Our plan was to create the LLC and have a detailed operating agreement before even looking to purchase any property. Is this wrong?
I also find conflicting information on weather or not a multifamily home can be under an LLC. A few people said yes, and a few people said no due being less then a 4 unit. Can someone explain to me weather or not it is possible? I noticed you can transfer later with a deed, but you run the risk of "Due at sale clause".
Even a single family house can be under an LLC.
What do you mean transfer later with a deed? Transfer the title and ownership with a deed of trust? There is a St. Germain Depository Institutions Regulation Act that might be applicable to what you are doing: http://articles.chicagotribune.com/1998-12-05/news...
I would like a clearer idea of what you're asking however, so you and a partner will form a partnership LLC, and take out a loan from a bank? or other lender? then buy a property? Do you plan to wholesale or rehab?
Yes i mean transfer title and ownership with a deed of trust. I have to look more into it, but i was reading someones post talking about a quit claim deed.
Our plan is to purchase a multi-family home together and hold it for several years while renting it out to tenants.
I was asking really if it was possible to purchase a property under the LLC to begin with instead of transferring later. With some research later i heard it was close to impossible especially being our first property and a new LLC. Is this true?
My other question was about if it was a bad idea to create an LLC months before actually purchasing a property. The reason behind this is because i am actually overseas. The idea behind this was to have everything set up so in 6 months when i come home we are ready to start looking into properties.
Thanks for the reply i hope to hear more from you and possibly others. I apologize if i was unclear.