All Forum Posts by: Megan Templeton

@Shannon D.

Try to check Royal Legal Solutions they're 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

@Dan Velez

Try to check Royal Legal Solutions they're 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

@Brian Skeel

Try to check Royal Legal Solutions they're 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

@Charlie Palmeri

Try to check Royal Legal Solutions they're 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

Depending on the type of property and type of loan, the property can be moved post closing to a trust without trigger the due on sale clause. This is due to an exception called the St. Germain Act. The St. Germain Act states that a property with less than 5 units can be transferred under certain circumstances. You have a residential SFH, you should not have an issue transferring title post closing a land trust (which can be connected to an LLC) as long as you remain the ultimate owner. Happy to answer questions on this process if it would be helpful.

Hi there! I would definetly recommend working through an LLC for your properties. Stats say that if you are an investor for more than 10+ years, you have a 90% chance of being sued at some point. For long term investors, its not so muh of if you will be sued, but when. While insurance is a good first line of defense, it is not conclusive. Insurance companies are a business and inside of that looking to mitigate costs. In doing so, they will often find reasons to not pay out on a claim. If thats the case for you, you want a true line of defense in a lawsuit - thats where an LLC comes in. An LLC separates you from your business so that if your are sued, your personal assets arent at risk. There are always ways to mitigate business liability by seperating out assets (you have touched on this with a series LLC). Using an LLC not only provides liability protection but can open up opportunities for you for working with 3rd parties such as lenders or partners who require an LLC. If your LLC is set up correctly, the operations and financial pieces of it can be minimal and easy to manage.

@Sam Lee

Great questions - the child series are considered individual entities so if anything goes wrong in child series A, only the assets in child series A are at risk. The assets are separated from each other in the child series so it provides the minimization needed. For taxes, it is similar to other entities. For most clients, its a pass through entity.

Thanks,

-Megan

Hi there! I would definetly recommend working through an LLC for your new property. For LLC formation, you have a few options: you can work with a document provider like Legal Zoom, do it yourself through forms on the Secretary of State website, or go through a traditional law firm. I recommend going the law firm route. Trying to do the forms yourself the first time could be confusing and you may not be aware of all the wording needed in the operting agreement, the annual compliance costs/requirements/etc. Using a document provider like Legal Zoom may work in some cases but the docs are templatized and not set up to be individual to your business or scale well. You also wont have a team to guide you as your bix grows or how to stay compliant. I recommend a traditional law firm so you have an advisor freom the start and as you grow, they can customize your set up, and help tackle any issues that come up as you go. Royal Legal Solutions is a good option to check out. They operate in all 50 states and offer customized LLCs with anonymity.

It will depend on the property type and type of loan you ultimately go with but its likely you can move the proeprty post closing due to the St. Germain Act. You will need to review how many units the property has, if its a resdiential loan, and use a trust in conjuction with an LLC when you move it over. Happy to chat more about this if its something you decide to pursue.

There are exceptions to the due on sale clause depending on the type of loan and type of property - I would recommend reviewing the St Germain Act to learn more. You could also refinance and move the property at that time. Lenders will sometimes grant approval to move the property as well so it would be worth chatting with your lender about it.