Happy Friday eve everyone! Hopefully someone can help shed some light on what my options here are:
I've been speaking to my dad, who is a service disabled retired veteran, about working together on some REI deals. I am very early in the game and I'm looking into business entity formation for California. Because my dad has access to specific veteran lending programs, we would like to use those programs for some of our potential buy and hold deals. My questions are: what business entity should we form in order to ensure we are eligible for the programs (LLC, Corp, etc)? Would we have to be equal partners or could I be majority owner as I would be handling the majority of the business operations? Any help would be greatly appreciated.
@Reginald Willhite first and foremost seek out a very knowledgeable mortgage broker to make sure the programs you think you can use are actually available. In some cases you may not be able to use those programs unless they are owner occupied. Your next call should be with a good real estate specific attorney. They will lead you down the right path as far as creating an entity and what type to form and what should be in your articles of incorporation.
Thanks a lot @Alex Deacon !
Reginald. The very best advice I can give you, being a lawyer myself, is that YOU SHOULD NEVER ASK OR GET LEGAL ADVICE ON BP. The few hundred dollars it would cost you to sit down with a competent lawyer is likely to save you a lot of brain damage down the road. If for example I told you that you should set up a C-Corp because the tax structure of a C-Corp would be exactly what you need for what you are looking for, you might think that makes a lot of sense. The problem is that would be totally wrong. There is no way to vet the advice you get on BP and while it is a tremendous resource to share information, to learn from investors and to meet people, it is not a place for legal advice. Good luck. I would help you offline but I am not a lawyer in California.
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