Buying property in Texas from out of State

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Buying property in Texas from out of State

Steven Chen
San Jose, CA · Member since 2017 · 3 posts · 1 vote
Hi All, I live in California. I'm considering to invest a property in Houston, Texas. This will be my first out of State investment. Do I need to register an LLC in Texas so I can lease the property? Or file any other form in Texas? Thank you in advance for any suggestions
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Cody L.
Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
9y
No. You don't need to register an LLC period. Some do for asset protection but a good GL policy is easier and cheaper. And you don't need to register squat to lease a property. Plus if you're out of state your PM will be leasing. If you put something under contract and want a second opinion on it let me know. I've bought thousands of units in houston (and also live in California). I know the houston market well.
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  • Cody L.
    Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    9y
    No. You don't need to register an LLC period. Some do for asset protection but a good GL policy is easier and cheaper. And you don't need to register squat to lease a property. Plus if you're out of state your PM will be leasing. If you put something under contract and want a second opinion on it let me know. I've bought thousands of units in houston (and also live in California). I know the houston market well.
    1Reply
  • Rudy Hernandez
    Investor · TX · Member since 2017 · 67 posts · 22 votes
    9y
    Cody L. I agree with Cody on placing a policy instead of an LLC. As a matter of fact, if you go with an LLC a lot of banks will consider your loan a commercial one which hikes up prices and rates. I am actually in the process of learning about which policy would be best and most cost effective to cover me. It is something new so it's a learning process but I believe is the best approach.
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  • Jim BlackburnBusiness Member
    Lender · Florida Based (48 states Puerto Rico) · Member since 2017 · 321 posts · 121 votes
    9y
    Steven Chen - you can simply claim the income on your schedule E on your personal tax returns. - you can quit claim deed title to LLC after closing to protect personal assets from personal liability. - of you get a great buy, you can cash out 75% of new appraised value 6 months after purchase.
    954-993-1625
    Stairway Mortgage, a Division of NEXA Mortgage LLC597 Reviews
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  • Steven Chen
    OP
    San Jose, CA · Member since 2017 · 3 posts · 1 vote
    9y

    @Cody L.

    I am working on contract so would like to have a second opinion. That will help me a lot, thanks.

    @Jim Blackburn

    Thank you for your advice, I see you are in Chicago but you do have license in both CA and TX. If I have question regarding mortgage in TX, could I contact you directly?

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  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    9y

    @Steven Chen and @Cody L.  Look into umbrella insurance, this would be in addition to your insurance on any and all properties, which would need at least $300k of liability coverage each, then the umbrella insurance covers beyond that for all personal liabilities (auto, home, etc) as well as multiple properties.  Starts at $1 million coverage and is quite inexpensive.

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  • Sharon Tzib
    Real Estate Broker · Cypress, TX · Member since 2013 · 824 posts · 469 votes
    9y

    If you really want an LLC, you can get the mortgage in your name and title the property in the LLC's. Most lenders will allow this and many of my clients have done this. That way from Day 1 the property is in your LLC without having to circle back and do a quit claim deed.

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