Acquiring properties through an LLC

[Darwin Jimenez]

If I am going to invest in real estate through an LLC, will I be able to buy and hold or rehab properties in any state?....

So for example if I file for the LLC in Maryland, can I also go into DC or Virginia to invest?

[Scott Smith]

There aren't limitations on forming an LLC in state other than the state you intend to own property in, but the issue becomes that you will end up paying foreign filing fees. This can be a pretty big hassle and hurts your bottom line.

A tactic that can be used when a property is in a different state than your LLC, though it is exercised more often with the Series LLC, is by placing the property into a land trust, then assigning the LLC as the beneficiary to your land trust. This way it will be the land trust doing business in the state, not the LLC itself. While this does tend to make things a bit more complicated, the land trust can also function to provide you anonymity - so on top of avoiding potential fees you are also introducing an obstacle for anyone looking to sue you.

This can all get pretty complex. I would encourage you to find an experienced attorney who can give you advice on your specific situation. The forums are great for general information, but there can always e details that would impact the direction you should go.

This isn't legal advice, just my opinion as an investor.