Finally have my first two under contract! Now what? Legal help!

Finally have my first two under contract! Now what? Legal help!

Seattle, WA · Member since 2016 · 111 posts · 17 votes

I checked with my lender to ensure that a quit deed claim is something they're ok with.  It's being purchased under my name.  I've upped my umbrella insurance as well.

I live in Washington State. Investment 1 is in Alabama. Investment 2 is in Ohio. I have an LLC in Washington State.

Can I put them under my LLC in Washington? Should I create an LLC in both those states and put them under there? This moment has been coming after over a year of doubt, second guessing, research, learning, stalking these forums, talking to people, etc. and it's so great to have finally pulled the trigger! But now I realize that while I was busy learning about analyzing the numbers and what to expect, I didn't learn about the LLC aspect!

Thoughts!  Thank you in advance!  And thank you to this forum for the encouragement to finally take the plunge!

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  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    8y

    Normally you do not ask your lender if you can quit claim the homes out of your name and into an LLC? They could call the loans due on you. Also is your umbrella insurance policy also including your LLC?

    Good luck

    Curt Davis - KAIZEN Realty538 Reviews
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    U can use a state specific LLC or you can use the WA LLC and register it as a foreign corp.

  • San Ramon, CA · Member since 2017 · 78 posts · 97 votes
    8y
    If you are going to own property is Ohio there are some benefits to having an LLC as an OOS investor when dealing with evictions etc. We have one setup there for our properties. It is also really cheap $99 one time fee and no yearly. Only consideration is more how your home state looks at your LLC interests. In CA we are taxed at a minimum of $800 a year per LLC so would love to have each property in its own LLC but numbers don’t work being is CA, maybe it would for you. Would check with your CPA. Cheers, Art
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