Hi BP family,
Throwing up the bat signal - need some advice! I am new to Omaha and just starting to invest in rentals. I am looking to build my network of local experts and I am in search of recommendations for experienced Real Estate Attorneys and CPA's.
I am seeking legal advice on the safest and most beneficial way to structure my properties in the future. For example, do I create an LLC for each property or go the land trust route? I appreciate any and all guidance.
@Leigh Mueller Hi Leigh, we specialize in this kind of thing so I guess I can be Batman here. Long story short, you can do both an LLC and a land trust, and they compliment each other. We typically put properties into land trust, and that in turn goes into an LLC. Feel free to message back or connect with me if you'd like to know more. We have a lot of free resources on the subject that I'd be happy to share.
Hi Leigh, I think there are a lot of ways you can go about this. LLC vs. no LLC is a long debate and there are lots of BP posts/articles that argue both sides.
I think it depends a lot on what your goals and how you are starting. For us, financing was much cheaper to buy the house in our own names and then getting landlord insurance and/or umbrella policies was the better way to go. If you buy through an LLC, there are stricter regulations and higher requirements for financing. So I think we'll consider going that route when we have more properties, but not starting out. If you were to buy a big multifamily property right off the bat (like a 300 man apartment complex), that might change things.
Be sure to read about the arguments for and against LLCs and also how it fits your path.
Thank you @David Y. - great advice!
Leigh, if you have legal / business structure questions specific to the Omaha area, my legal advisor / realtor is Ben Thompson:
https://thompson.law.pro/about-us/ben/ I'll repeat the nutshell of what he's told me and how I followed that advice for both single and multi-family investments in Omaha. Basically, it is a trivial thing for any decent lawyer to pierce the "corporate veil" in following the chain of title. If you're looking for legal protection, investigate trusts and s-corp routes. I'd not recommend going into any purchase agreements without first looking at those options. Omaha is an interesting area to live / do business in, but you're not alone in that area, plenty of investors have made very good livings off 'being at the right place at the right time,' in that area--in fact, super excited to be out there to kick off a syndication deal in a week or so (6/4/2019)!
I would always recommend shopping around a bit, too. It's a good idea to see if the local area attorneys are all asking different questions or if they are all over the board on price and their focus. This article covers some of the basic questions I would present to any attorney I would intend to work with going into the future: https://www.biggerpockets.com/blog/questions-new-investor-attorney/ I would also mention looking into some national firms, too. Some areas might not be picking up on national trends and the local investors are the ones who feel it, so it's good practice to shop both local and national.
Thank you all!
If you still need help, I can introduce you to some local attorneys and CPAs. As an Omaha investor, landlord and Realtor to investors I have a vast network here to help people be more successful in their adventures. You will find Omaha can be a "big small town" where we liek to help each other to bring up the whole area!
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