Seeking a CPA and RE Attorney in Lehigh Valley/Philadelphia Area

7 Replies

Hi All, 

I am looking to get obtain critical legal advice while creating a key team around me moving forward in the buy and hold real estate process. 

I have some questions on the methods of utilizing an LLC while investing, as well as, what are some of the best strategies for leveraging assets, lowing risk, etc.

Please let me know if you may be interested or know anyone you can refer to me! 

Thanks,

@Kyle Lauriano

For an accountant, you can reach out to @Tim Butters . That said, you can also work with accountants who are not local. There're a bunch of us here on the forum. 

Attorney, on the other hand, is best to find locally.

@Kyle Lauriano

What kind of properties are you looking to buy? Smaller stuff? Large commercial properties? It would be helpful if you provide more details so that others can try to make a good reference. Not all RE attorneys have the same level of expertise in all the different areas of the practice.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

Hi @Chris K.

Thanks for the feedback, I will be looking to invest in small MFA (1-4 units) at this time, attempting to scale my business over time. I am interested in a Series LLC, understanding trusts, and acquiring optimal loans while maintaining security and anonymity.

Please let me know if you require further details,    

Hi Kyle,

Have you considered setting up at Series LLC for your buy/holds? This type of asset protection dos not need to be created in the state in which you reside nor the state that the properties lie. This makes it very easy to add or remove properties or other assets from the structure.

A Series LLC is a type of limited liability company that is utilized to protect and separate assets. Think of the Series LLC as the parent LLC and the individual series as the children. Each individual child series holds an individual asset.

When the property is transferred correctly, the property will be owned by the Land Trust, which in turn flows to the individual child Series, as Beneficiary of the Land Trust, and then finally flows to the parent Series LLC, as Member of the individual child Series.

The Series LLC has benefits in lawsuit prevention, separation of assets, cost savings, and tax benefits. Please send me a personal message if you have any additional questions. I would be happy to explain this process in more detail.

Best of luck!

Scott Smith

@Kyle Lauriano

Some thoughts based on what you wrote:

  • On the purchasing end for those smaller units, you probably can get by without spending a ton on attorney fees. My general recommendation there is to work with an attorney/law firm that owns (or has a business relationship with) a title company. For various reasons, I think that's the best way to get the most bang for your buck. 
  • I'm not yet a fan of Series LLCs in Pennsylvania. Among other things, the Commonwealth has not yet made up its mind about various issues surrounding Series LLCs. And being a swing state, sometimes politics can swing things in funny ways when it comes to unofficial policies at the state level (e.g. bulletin materials from the PA Department of Revenue). Maybe I'm being too cautious as an attorney but I see too many unresolved issues at this point.
  • On a similar note, most smaller RE attorneys in PA will never have to seriously deal with Series LLCs. So if you really want to explore that option, you will either: (1) need to have two separate attorneys working on it; or (2) go to a bigger law firm where hourly rates range from $500 to +$1,000 an hour. Sometimes it's worth it but not sure if it is worth it for you at this stage.  
  • I personally consider revocable trusts to be an absolute waste of money for asset protection purposes. Maybe it can provide some level of anonymity if you don't plan to use financing. But the moment there is a mortgage, that basically goes out the window. If you intend to use it as a business planning tool, it's useful. For asset protection, I just don't see it in Pennsylvania. 
  • For asset protection in general, the level of steps you have to take depends on your net worth. For example, it's very hard for a standard judgment creditor to reach the assets of a moderately wealthy (say someone with a net worth of a $1 million or two), young, married investors. The serious kind of asset protection tends to become more beneficial when you start thinking about ways to deal with gift/inheritance taxes at the federal level. If you are not at that stage, you probably don't need to pay thousands of dollars to protect your assets. But it's ultimately up to you.
  • For loans, you have the basic options of Fannie/Freddie versus portfolio/commercial loans. What to go for depends on your circumstances and your networking connections to the banks. I personally prefer the later but again up to you. 

Shoot me a PM if you want some recommendations. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.