During the P&S agreement, do you usually put down both your name and the LLC name on the P&S agreement as buyer? For example, "your_name, your_LLC" as being the buyer.
I have notices that for seller, he only puts down his LLC name on the "P&S Agreement".
FYI: I am the manager of the LLC, and will have all exclusive decision making.
FYI: I will write a check for the down payment out of my personal account at this point.
Would it be possible just to put my LLC in the P&S?
I just put LLC on offer and would suggest you set up an account for the LLC and use funds from that account for down payment. Possibly "loan" your LLC the money to get started with and repay at some future date.
Isnt the idea to have them as 2 seperate things?
Agree with Darren. The "buyer" in your contract should be one, or the other, not both. If you're buying in the LCD, the LLC is the buyer, period.
If you are buying in the LLC then the LLC should be the "Buyer".
You should have a bank account for the LLC and that is where the checks should be coming from. Even if you don't have the funds in there at the moment then take your personal funds and put it in that account to cover the checks.
When you are signing the documents I would put under my signature "Chan K. Managing Member XYZ, LLC". I actually have a stamp since I do this enough. :)
LLC is the buyer, when you sign you sign your name and put owner or managing member of the LLC.
Unfortunately, the seller's agent tried to be clever on me. He put in the P&S
" .....Chan K., xyz LLC, as being the buyer .............................
I have asked my attorney to remove it and only put the LLC.
Since we are at the closing topic, I have been calling around for a closing attorney who is going to represent me at closing day.
I am not talking about the attorney who is representing the bank, but the one who is representing me (review the P&S, go to closing with me, ... etc).
Do you guy ever hired a closing attorney to represent you at closing?
Well, the first attorney did not give me a quote for the closing process, but he said he would charge me $300 per hour. He also told me that it will take 2-3 hours to review the P&S contract, about 1-2 hours to travel to closing site, and another 2 hours to sit in at closing. So, in total, I would end up paying him (2.5 hours + 4 hours)*300 = $1,950. Is this reasonable? FYI: I don't ask him to review any lease contract here.
Fortunately, I found someone who is willing to do for $650 (the whole closing process) to represent me.
I just want to get an opinion what is reasonable.
I used to review the P&S in the past myself, and it took about 45mins-1hour. I did not do this regularly, and no law experience background. I would imagine, it would take him about 1 hour or less to review the P&S with his experience and charge rate.
Paying someone almost $2k to represent me is bit high for this work. What do you guy think?
I've only ever used title companies before. Im not to familiar with closing process out of Ohio as I've only ever bought and sold property in Ohio.
@Shaun Reilly and everyone else on the forum recommended that I set up an LLC bank account, then move my fund there. Once, that is established, then write a check payable right out of my LLC.
Logistically, if I set up the LLC bank account now, I won't have a check book in time to write out the down payment.
What is the pro and con of write a check (cashier check) out of my personal account right now, but P&S and everything else is under the LLC name?
@Chan K. I think if you have to use the funds from a personal account since you don't have an LLC account then having certified funds is better than a personal check. Get the LLC account setup ASAP so you can start paying anything else out of that.
As for the attorney fee question the first guy is a criminal. That is ridiculous. RE attorneys are similar to agents in that they usually get paid at closing and usually some amount that are flat fees. Of course there can be billed hours that come up for things, but usually it is rolled into the fees and sometime they profit more than others. The 2nd one at $650 sounds about right if they are just doing your documents and stuff. It would be a bit more if they were doing all the other stuff as well. On that note be aware you will still pay all of the associated costs for title work, recordings and the bank's attorney fee on top of this.
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