Here is the scenario:
I am looking to buy an investment property in small town, Colorado. The property has 26 rentable units (14 trailers, 8 units in a single stick built structure, and 3 RV spot rentals) The asking price is $250,000, OBO. Zoned Commercial. Having a tough time getting a loan on it because the historical financial statements are accounted for incorrectly and show low NI. I have a partner interested in investing cash for a down payment or potentially the full purchase price.
To start an LLC or not start an LLC..., Obviously start the LLC. The true question is, what are the most important articles to include in the creation/structuring of the LLC. Since LLCs can be structured any number of ways the creators chose, I need to know what items are most important to include to: 1. protect against personal liability 2. satisfy the capital investing partner 3. set expectations of all partners.
I have created one LLC in the past for a product retail company with three partners.
Thank you for any experience that can be shared on this topic. Really looking forward to my first multifamily investment property.
Hey Hunter, congrats on moving forward with the 1st property!
I'm curious if you have talked to a good real estate attorney yet? I ask because from my experience we structure the LLC based off of the needs of each investment and the investors involved. I usually tell our lawyer what were looking to do and they advise us on the best way to structure it.
I bet you could get some great referrals for lawyers in the area on here too.
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