LLC's & Google Sites
So here is a little update from last week. First thing first, really think long & hard about your business name before doing anything. We had an appointment set up with a CPA to form our corporation this last Friday, but in the meantime I was eager to get the ball rolling!
So my wife and I decided on our business name and I went to GoDaddy and bought our name for 10 years costing $81. Needless to say, a few hours later we decided to change our name to Midland Park Properties, costing me an additional $81 to reserve www.midlandparkproperties.com for 10 years.
To build our website we decided to use Google Sites since it is free. I worked off of one of their templates and I'm about 8 hours work our website is done for now. We still need a logo, but that will come in due time. If anyone on here needs advice on Google Sites or how to build your website, let me know and I am more than happy to help. It is fairly simple, if you know how to use Microsoft Word and can Use Google to ask questions,myou can build your own website for free.
So our website is built, and we met with our CPA and formed our LLC. Apparently in the state of Kamsas it is a lot easier forming an LLC than I thought! You can do it all online as it takes maybe 20 minutes. The cost for the LLC is $160 if I remember right, plus an annual $55 renewal fee. (We also paid our CPA $65 to do this simple task for us.). Once you have your LLC formed, you go to IRS.gov and request an EIN number for free. In the matter of minutes, you then have everything you need for your new business.
After forming our LLC and calling a couple banks in town about getting pre-qualified for a loan, I quickly learned that there aren't any banks in KC that I know of that will give you a fixed rate 30 year loan in your LLC's name. I even talked to one lender who told me she recently called a loan for someone who transferred the title to their LLC after signing personally for the loan. Apparently banks used to issue fixed rate loans to LLC's a lot more, but not anymore. I did have a good conversation with a commercial banker who does offer rehab loans in 12-month terms in the case that we plan on doing a flip down the road, which is always nice to know.
So we have decided that we are going to stick with the route of personally signing for our properties since we can do fixed rate loans and favorable interest rates. (I was told by several banks that you can have a max of 4 loans including your mortgage at any given time). So we will buy these first several personally, and then plan on going the seller financing route for the rest.
As far as our LLC goes, I am still trying to figure out a way to use it, especially so we didn't just waste several hundred dollars. I have read a couple posts here on BP about having your lawyer prepare 2 deeds at closing and transfer it to your LLC during closing and you avoid he "due on sale" clause. We may try that, or just have our LLC act as a property manager for our properties.
We are looking at a couple possible properties with our RE agent this week, so wish us luck!
I will keep you posted!