All Forum Posts by: Megan Templeton

Hi there! @Brandi Jenine 

The type of property and type of loan you are trying to get can impact this. Feel free to reach out with more details and Ill help as much as I can!

Thanks,

-Megan

Hi there! @Erin Madden

Royal Legal Solutions is a great resource for what you are looking for. They are a one stop shop operating in all 50 states have attorneys and CPAs on staff to assist with entity structuring, business planning, and tax planning.

Thanks,

-Megan

@Kevin Melanson

We have worked with clients on this before but it can be a pretty involved process. It requires a lot of coordination with the code office and how to structure the application so that you can benefit from LLCs protections while also getting approved. At a high level, it would likely involve completing the application in conjunction with the code office with the applicant being listed as a trust that flows through to you ultimately. However, due to the complexity an variations that can occur depending on the property and owners history, I would recommend chatting with an advisor to map out a plan for this.

Thanks,

-Megan

@Justin Cox

I would recommend starting out with an LLC. A C corp has a lot of tax benefits if you have high level income but it also comes with a lot of formalities that can make operations difficult when just getting started. I would go ahead and get the LLC set up and purchase the property with the LLC. I would also recommend setting the LLC up with anonymity. This will give you an additional layer of insulation from lawsuits.

Thanks,

-Megan

Hi there! @Caleb Smith

I would recommend maintaining property insurance and umbrella policy. Those policies in conjunction with the LLC will give you several layers of protection. I would also recommend layering in anonymity where possible for more security (this can be done at the LLC level and the property deed level).

Thanks,

-Megan

Hi there! @Giovanni Urquiza

Are you looking for a purchase agreement? If so, what state?

Thanks,

-Megan

Hi there! @Tatiana Zagorovski

I do recommend holding the STR in an LLC - an LLC with anonymity if possible. The important pieces to consider when setting up an LLC is the cost to form the LLC, the state requirements for compliance, the charging order protections in the state, and lastly where the property is located (although this is not definitive). The LLC formation process involves completing paperwork and filing with the secretary of state, paying a formation fee, and creating an operating agreement. The cost varies by state. The process can take between 1-6 weeks depending on the state, attorney you are working with, and complexity of the operating agreement. For attorneys, The benefits of using an LLC are that it removes liability from your personally and provides protection in the event of a lawsuit because the only asset(s) at risk would be those held by the LLC. There are also tax benefits and lending benefits as an LLC provides new opportunities for write offs, financing, etc. I would recommend researching real estate investor specific attorneys and those that operate in multiple states so that as you grow and purchase properties in other states, your attorney team will be able to accommodate your needs. I would check out Royal Legal Solutions. They are a one stop shop operating in all 50 states catering to investors.

Thanks,

-Megan

Hi there! @Tom Kiem

Congrats on the possible move and new property investment. I do recommend holding the property in an LLC - an LLC with anonymity if possible. The important pieces to consider when setting up an LLC is the cost to form the LLC, the state requirements for compliance, the charging order protections in the state, and lastly where the property is located (although this is not definitive). The LLC formation process involves completing paperwork and filing with the secretary of state, paying a formation fee, and creating an operating agreement. The cost varies by state. The process can take between 1-6 weeks depending on the state, attorney you are working with, and complexity of the operating agreement. For attorneys, The benefits of using an LLC are that it removes liability from your personally and provides protection in the event of a lawsuit because the only asset(s) at risk would be those held by the LLC. There are also tax benefits and lending benefits as an LLC provides new opportunities for write offs, financing, etc. With an American citizen part of the LLC it will cut down on some of the complexity and you will use a TIN for your portion of ownership. I would recommend working with an attorney on the process due to the extra steps required because you will have a member who is not a US citizen. I would recommend researching real estate investor specific attorneys and those that operate in multiple states so that as you grow and purchase properties in other states, your attorney team will be able to accommodate your needs. I would check out Royal Legal Solutions. They are a one stop shop operating in all 50 states catering to investors.

Thanks,

-Megan

Hi there! @Shannon Vistisen

Congrats on your first investment property. I do recommend holding the STR in an LLC - an LLC with anonymity if possible. The important pieces to consider when setting up an LLC is the cost to form the LLC, the state requirements for compliance, the charging order protections in the state, and lastly where the property is located (although this is not definitive). The LLC formation process involves completing paperwork and filing with the secretary of state, paying a formation fee, and creating an operating agreement. The cost varies by state. The process can take between 1-6 weeks depending on the state, attorney you are working with, and complexity of the operating agreement. For attorneys, The benefits of using an LLC are that it removes liability from your personally and provides protection in the event of a lawsuit because the only asset(s) at risk would be those held by the LLC. There are also tax benefits and lending benefits as an LLC provides new opportunities for write offs, financing, etc. I would recommend researching real estate investor specific attorneys and those that operate in multiple states so that as you grow and purchase properties in other states, your attorney team will be able to accommodate your needs. I would check out Royal Legal Solutions. They are a one stop shop operating in all 50 states catering to investors.

Thanks,

-Megan

Hi there! @Matt Mcconnell

Congrats on your first investment property. I do recommend holding the property in an LLC - an LLC with anonymity if possible. The important pieces to consider when setting up an LLC is the cost to form the LLC, the state requirements for compliance, the charging order protections in the state, and lastly where the property is located (although this is not definitive). The LLC formation process involves completing paperwork and filing with the secretary of state, paying a formation fee, and creating an operating agreement. The cost varies by state. The process can take between 1-6 weeks depending on the state, attorney you are working with, and complexity of the operating agreement. For attorneys, The benefits of using an LLC are that it removes liability from your personally and provides protection in the event of a lawsuit because the only asset(s) at risk would be those held by the LLC. There are also tax benefits and lending benefits as an LLC provides new opportunities for write offs, financing, etc. For priority list, I would identify a lender to work with then get a lawyer and CPA in place to set up the LLC with the requirements the lender has put in place. I would recommend researching real estate investor specific attorneys and those that operate in multiple states so that as you grow and purchase properties in other states, your attorney team will be able to accommodate your needs. I would check out Royal Legal Solutions. They are a one stop shop operating in all 50 states catering to investors.

Thanks,

-Megan