All Forum Posts by: David Disraeli

It is never a good idea to put investment real estate into your own name because you have unlimited personal liability. An LLC, if set up and run correctly shields you from that liability. That said, I have had investors tell me they've operated in their personal names for 20+ years without a problem. Cheap insurance. A series LLC will allow you to do more than one deal at a time without having to form a new LLC each time - or expose one property to another's issues.

Shashank - I'm not sure if I understand your question. When you say "assign the rights" of the LLC do you mean the LLC shares/units or the properties it owns? The former is highly problematic and the latter is very doable. Regarding your other question, there is no real benefit to forming an LLC in one state an operating in another. Texas charges $750 to register an out of state LLC (although there are some limited circumstances where you don't have to register here). The multi-state LLC's I have formed had to register in other states because were operating there. That can get expensive. PM me if you have more questions.

Hi Forrest I just set up a Texas Series LLC for 3 properties: AL, FL and VA. NH doesn't have to recognize the TX structure any more than they would a company formed in the UK. However you much register the TX entity in NH. That is fairly straightforward. The entire process is beyond what I can type here. PM me if you'd like specifics.

The series LLC/umbrella is a great combination. However only certain states offer the series and if any LLC is set up in one state and operating in another state - it must be registered in that "other state". Depending on how many states are involved it may or may not be beneficial to set up a series vs a traditional llc.

Transferring property into an LLC may be very simple or complex depending on the county/state. I have done them in TX, VA, NE, FL, and AL. I think the most expensive one was $250 total including the deed preparation fee. The due on sale clause for transferring property with a mortgage on it is normally not an issue. I personally have not heard of one lender that complained. They would have to 1) Find out, 2) Care, 3) Take action. You can always deed it back if all that happened. Not an attorney and can't give legal advice!

Hi James - opinions vary on how a series LLC would hold up under attack since they are so new. LP's can be pierced as well and cost much much more to set up. If more than one property were placed in an LP - they would all be available to a charging order. A charging order to the most a successful plaintiff can get in Texas (unless criminal activity took place). So can't imagine why an attorney would recommend the LP/Inc. structure outside of the additional fees ($2,000 vs $10,000 or more). One thing you don't read about much is the fact that if you transfer property into any entity, the title policy made be void as it was issued to the benefit of the original purchaser and not transferrable. Check with your title company. Therefore the best approach is to buy in the entity from the start. All that said: I would be interested in any theory that articulates why an LP is better. PM me if you want to talk further.

Assuming you recorded the deed of trust to perfect your lien, you need to assign it.  I agree a title company or real estate attorney can do it inexpensively.  If you need a nane, p.m. me.  

I just set up a TX series LLC for someone with property in AL, VA and FL. From what I know, the only state that will tax a Texas LLC is CA if you live there. Otherwise, since you live in TX you won't have any state franchise fees to pay. I'm not sure what you mean by anonymity. In Texas, the owners of an LLC are not shown anywhere, but the managers are. The structuring of a series LLC is much different from a traditional LLC and I would suggest you hire someone. Let me know if you have any questions.

I just saw the question about deed transfers.  We use CSC Global they have most counties in the U.S. and allow us to record electronically like a title company.  Some counties restrict this to attorneys so I have a partner who does those for me.  It is $11 and you get a stamped copy back the same day.  Keep in mind, the counties will record anything you send them and they DO NOT check it.  If there is a mistake in a deed, you may not know until you go to sell or transfer.  

Hello All - very few attorneys specialize in series LLC's as they are tricky. We form them for $1000 plus filing fees and provide all consulting and an "owners manual". What happens after they are formed is more important than the formation itself. Happy to help or advise.