Hi BP Family,
Recently I have come across a seller who is selling his Series LLC in Illinois with a portfolio of rental properties. I have never bought a LLC before and really would like more guidance on how this is done.
The owner said the properties are under a Series LLC, and there is a current Bulk Loan in place. Does anyone have experience purchasing a series LLC? What are the financing options for such a purchase? I appreciate all your input. Thanks everyone!
I am from Illinois, but I am not an attorney. You should really get in touch with an attorney if you want to move forward with this.
An LLC is 1 business company and in Illinois it cost $600 to set one up online.
A series LLC is originally cost $850 for the LLC plus $250 for every LLC set up under it in the future.
Purchasing the LLC means you would become the owner of the LLC.
Depending on the size of the portfolio, talk to a bank and you should be able to get loan based on the performance of the properties. It will probably have to be a commercial loan, again depending on the size of the portfolio. You will need to show the bank the cap rate, etc. The fun financials.
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@Nazz Wang Something to consider also. You are buying an LLC, not Real Estate. That includes all assets and liabilities, such as checking accounts, credit cards, unpaid workers and invoices, unpaid rent, and taking the risk on any claims against the LLC based on the current owners actions. Make sure you understand the risk.
For example. I bought an apartment building. Two months later a tenant filed a claim against me for a slip and fall a couple weeks before I closed. I had the suit dismissed because I didn't own the building when she fell. If I had bought the LLC, I would not have been able to dismiss the claim.
I'm not trying to scare you off, but make sure you understand the risks that go with buying the LLC versus buying the real estate.
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