Hello Twin Cities Bigger Pockets members. I'm a newbie looking to make my first purchase of a buy and hold property. Looking for a CPA and real estate attorney to add to my team, so that I have a good business structure before I start making offers. Essentially, want to get advice from a professional on asset protection (LLC?) and to review landlord forms I've downloaded from Bigger Pockets to ensure they meet MN legal requirements .
Anyone have a referral for me? I'm focusing on the west metro and St. Cloud markets. I would appreciate any input. Thanks.
@Jeff Marciniak I don't have any referrals in the space you're looking for but you can just punch in "YOUR CITY or AREA" plus "ATTORNEY" into the search window above and check out a few people's past endorsements to zero in on someone that fits your ticket. The BP Plus or Pro level will give you way more general advertising, networking and search options to zero in on a micro level.
Give @John Woodrich a call for a CPA.
I’d call @John Woodrich
Thanks for the recommendations.
First step is to find a property you are interested in purchasing and get your finances in order. An LLC is a good idea but if you purchase with a conventional loan or many other loan products they will require you to put the property in your name. There are ways around this but if it is your first property and you don't have a lot of outside assets the hassle may not be worth it.
As far as leases go - laws vary by state. The common leases used in MN are the ones drafted by the MN Bar Associaiton and MN Multi-housing Association. MN Bar form is free, MMHA form has to be paid for but it is cheap. You will find that many of us use one of these forms and add to it if needed.
@John Woodrich is correct. Legal can come later, especially if you are purchasing multifamily as an individual. If you have any doubt, draft the Buyer/Purchaser as Jeff Marciniak and/or assigns. Sometimes Sellers frown upon that language as smart sellers are wise to avoid contract flippers. That said, do your homework on the rental license status and past violations. While you likely don't need an attorney to draft a residential PA (1-4 units), there is key language you need to add to the addendum to avoid surprises at closing--i.e. $0 in security deposit transferred at closing with $0 in pro-rated rent that you have to evict at your cost. If you notice any new capital, make sure you request the Seller to transfer the warranties at closing. Good luck!