All Forum Posts by: Jonathan Herron

I plan to attend and look forward to meeting everybody.

@Jesse Daconta there are different reasons to set up an LLC (or other business structure) at various stages of a deal. Some people prefer to set them up at the beginning, others at the end, and others after they decide to stick with a business/investment.

The most important thing I tell clients is when forming the LLC think about what happens if things go bad when they are still good. If there are multiple members I make sure to include dispute resolution in the operating agreement. (What to do if the owners are evenly split about a decision.) Doing this when the relationship sours almost never work but having the structure in place from the beginning helps the business operate.

I also generally advise all clients forming a business entity to consider the exit plan.  Do they plan to sell in the future, buy/sell agreements between owners, etc.  

@Mayer M. try Stephen Rodier.  I will pm you his contact information.

@Jonathan Oundo it depends on how you are wholesaling the property.  Below are two possible ways with how the deed will typically go:

• You enter into a contract of sale with the Seller.  You then assign your rights as the buyer under the contract to a third party buyer.  In this case, the deed will end having the third party buyer as the grantee (the person the property is being transferred to). 
• You enter into a contract of sale with the Seller.  You then complete the purchase of the property.  You then sell the property to the third party buyer.  In this case, at the first closing, the deed will be made to you as the grantee.  At the second closing, you will be the grantor (the person transferring the property) and the third party buyer will be the grantee.  This is true even if the second closing is immediately after the first closing.
• As @James Lloyd said in New Jersey the Seller/Grantor typically prepares the deed.  

Hopefully, this is helpful.  I should mention that the information above is general in nature and in any particular transaction the outcome might be different.  

@Donald Scott congratulations on taking these concrete steps towards achieving your investor goals! 

A great first step is getting a business bank account(s).  At least an operating.  Depending on where in NJ and the convenience of a location to you local banks can be a great asset.  In South Jersey, I have been very pleased with Republic Bank.  I have also had clients report back favorably regarding Investors Bank.

If a larger, personally used bank is more convenient to you then, by all means, use that.

As for other now what moments this is a good time to review your operating agreement to make sure you understand its meaning, and that it contains the terms for your business that you want.  A second next step is to ensure that any lease you plan to use is properly drafted.  

@Poornalakshmi Elangovan welcome to BP!  South Jersey has some great opportunities but as with any investment, it is important to do your due diligence.  I am always happy to answer any questions you may have.

An attorney will be able to ensure that all the terms of the deal are accurately drafted into the contract.  While there is no requirement to use an attorney it is common, especially in North Jersey.  As for a fee that would depend on the attorney you hire. 

@Stephen Kappre get an estimate on repair costs and ask for the price to be adjusted accordingly. If they will not do that then I would suggest walking unless the numbers still make the ROI worth the added repair costs.

@Jason Baik sounds like you have a background which will be helpful in success in REI. Feel free to contact me if there's any way I can help.

The list is typically maintained by the tax assessor for the individual municipality.  Contact them and they should be able to provide the information.