LOI and Entities

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Real Estate Consultant · Camarillo, CA · Member since 2010 · 2k+ posts · 1k+ votes
9y

You can put the loi and contract under your name and close under the LLC. The LLC will assume the contract before closing. With a small MF you may want to own several in the same LLC. As you get larger you should one in each LLC. This will help protect each property from the liabilities of the other as well as you.

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  • Investor · Orlando, FL · Member since 2016 · 1k+ posts · 780 votes
    9y

    Is this a residential property or commercial?

  • Investor · Boulder, CO · Member since 2016 · 46 posts · 7 votes
    9y
    It is a 12 unit multifamily
  • Real Estate Consultant · Camarillo, CA · Member since 2010 · 2k+ posts · 1k+ votes
    9y

    You can put the loi and contract under your name and close under the LLC. The LLC will assume the contract before closing. With a small MF you may want to own several in the same LLC. As you get larger you should one in each LLC. This will help protect each property from the liabilities of the other as well as you.

  • Investor · Dallas, TX · Member since 2016 · 32 posts · 29 votes
    9y

    Hi @Brian Keeler - We write the LOI's in our "individual names &/or Assigns" or if you have created an Asset Management Company - You could do that too " AM Company &/or Assigns" and then - flip it over to your newly created LLC at closing. Unlike @Jeff Greenberg we use a new & Separate LLC for each property.  We also wait until under contract before we create the new LLC - saving you expenses in case your LOI is not accepted. 

    I hope you have found helpful!! Best wishes to you on your LOI!!

  • Investor · Boulder, CO · Member since 2016 · 46 posts · 7 votes
    9y

    I very much appreciate everyone!

  • Real Estate Consultant · Camarillo, CA · Member since 2010 · 2k+ posts · 1k+ votes
    9y

    @Bonnie Staples We also use a different entity for each property. 

    As I stated he could put smaller properties together.  This would reduce bookkeeping and other expenses, but would allow for liabilities to cross properties.

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