All Forum Posts by: Megan Templeton

Hi there! @Deepak Walia

To move the properties into an LLC, you will need to create the LLC with the Secretary of State, have a deed drafted to move the property into the LLC, and have the deed recorded. I would recommend working with an attorney as they can guide you through the LLC formation process, deed prep and recording, etc. Depending on the type of provider you go through, the costs range from $400-$1600 (legal zoom vs. attorney office). Many providers' such as legal zoom will use templates that aren't customized to your structure and you can run into issues later so I would recommend working with an attorney you can build a relationship with and continue working with as your biz grows.

Thanks,

-Megan

@Sam P.

No concerns - as long as the titled owner of the property (ther LLC) i listed as an additional insured or interested party you will be covered.

Thanks,

-Megan

Hi there! @Tyler Durbin

I would recommend creating an LLC to be your operation LLC. This LLC wouldn't own any assets but would serve as your public facing entity. To clarify, the LLC would be the one that enters contract with 3rd parties such as service providers and tenants. All money would then flow through your operations LLC and the operations LLC would then distribute to the asset holding LLCs based on the ownership. This set up allows you to have an extra layer of liability protection because your asset holding LLCs are not interacting directly with the public and it can streamline business practices as banking/bookkeeping can all be done under the operations LLC. The trick is to make sure you have a contract between each asset holding LLC and the operations LLC for property management.

Thanks,

-Megan

Hi there! @Khaled El Dorry

To move the STR into an LLC, you will need to create the LLC with the Secretary of State, have a deed drafted to move the property into the LLC, and have the deed recorded. Operationally, you will also need to update the owner of the property with the STR licensing board and any hosting platforms you are on. This can be tricky to navigate depending on the regs in the city of the STR. I would recommend working with an attorney as they can guide you through the LLC formation process, deed prep and recording, and working with the code office for your STR license.

Thanks,

-Megan

Hi there! @Pierre Eade

I would recommend switching the property to the LLC. For long term investors, its not a matter of if you will get sued, but when. The transfer tax now will be change compared to the costs you could incur to fight a lawsuit later on. To provide yourself and your biz with the highest degree of confidence, I would recommend moving the property to an LLC at this stage so your assets (both personal and business) are protected.

Thanks,

-Megan

@Jacob King

You will need a local attorney for this one.

Thanks,

-Megan

Hi there! @Serge Velet

Royal Legal Solutions is a great resource for what you are looking for. They have attorneys and CPAs on staff to assist with entity structuring, business planning, and tax planning.

Thanks,

-Megan

@Cole Agnew

You would need an SEC atty for this one.

Thanks,

-Megan

Hi there! @Jason Thompson

I would recommend making a first pass at an offer in the letter based on fair market value. This will show you are serious and provide the seller with an easy starting point for negotiations. You could also mention how quickly you could close, if the offer would be cash, etc.

Thanks,

- Megan

Hi there! @Randy Babineau

@Randy Babineau I do recommend separating out the properties into separate LLCs. This ensures that if one property is litigated against, the other property isn't at risk. It places the properties separate "buckets" per se. You could use a separate LLC for each or you could look into an entity like a series LLC or DST. This would allow you to have one entity that is filed with the Secretary of State but you would be able to create unlimited child series LLCs underneath without the need for additional filings, banking, etc.

Thanks,

-Megan