Arizona Hard Money / LLC Set Up

3 Replies

My wife and I are new to real estate investing, and we are getting ready to do our first flip.  This particular property has recently been renovated, and is about to go into foreclosure so we will have very little renovations to complete.  

We're looking at a local hard money company, Active Funding Group, and it sounds like we need to set up an LLC in order to use them. Does anyone in the BP community have experience with this hard money lender, and can anyone suggest a company to help me set up an LLC? Also, I've heard that many investors set up their LLCs in NV or DE. Can anyone suggest a strategy and why one would chose a state other than the state where the property is?

Best,

Randy

@Randy Smith

I haven't heard of that HML, but you can create your LLC on your own instead of paying someone else to do it. It's pretty simple. You can just go through the Secretary of State site https://ecorp.azcc.gov or use a site like https://www.llcuniversity.com/arizona-llc/. I don't have an affiliation or anything, but have used them to form my own LLC a few years ago.

@Randy Smith . I would recommend that you DON'T set up your LLC out of state. If you're going to be doing business in Arizona, then you should register your LLC in the state where you are doing business.

ALSO, the AZ Corporation Commission has what they call an EXPEDITE fee that you can select when you go to form your LLC. It's an extra $35, but if you are in any kind of a hurry, you need to do that. Even when things are going smoothly and with the expedite fee, the AZ Corp Commission is taking at least a week (and frequently longer) for form your LLC. If you do NOT expedite it, you might be waiting at least a month.

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