Legal Setup for 1st purchase

[Clarice Johnson]

Hi everyone! I'm purchasing my first deal in Cincinati, OH. I live in Los Angeles! What is the best way to organize my company legally? This is what I was thinking.

I already have my main/holding company in Wyoming. It's set up as an LLC. Should I set up a new LLC in Ohio for this specific purchase that would go under my holding company?

Please let me know your thoughts! Thank you!!

[Nicholas L.]

@Clarice Johnson

hi Clarice!  I know this wasn't your question, but whenever I see a new CA investor looking to buy in the midwest I can't help myself.  you might know all of the following already, but here goes.

-OOS investing is more difficult than advertised.  a lot of new investors assume that if you have the "team" in place - agent, lender, PM, etc. - things will just be handled.  they won't.  the QB of the team remains you.  no one is going to take ownership of the whole process.

-returns on non-value add LTRs have gone to zero in the short term.  so you need to think hard about where to invest your capital.  if you have a strategy that is going to produce a return for you, that's great.  but there is no "cash flow" whatsoever in the short term on LTRs right now.  none.  not in any market.

-see these threads for more info on what can go wrong OOS.

Turnkey Nightmare: Property Manager Ignored My Warning About a Missing A/C…

Nightmare with my property manager - advice needed!

Feedback Needed: $8.8k Turnover Quote for 2BR Duplex (Half)

Out-of-State Landlord Nightmare: 4 Months No Rent, Cleveland Escrow Battle

Failed BRR in Memphis TN

A Cautionary Tale About a Property Manager in Cinncinatti

https://www.biggerpockets.com/forums/48/topics/1242392-rough...

https://www.biggerpockets.com/forums/48/topics/1137397-balti...

https://www.biggerpockets.com/forums/432/topics/1231840-sell...

https://www.biggerpockets.com/forums/311/topics/840134-memph...

https://www.biggerpockets.com/forums/963/topics/1195280-expe...

i hope this is helpful.  i would be happy to connect to discuss further if you'd like.  i have nothing to sell and am not on here to cheerlead.