New Investor in NW Indiana looking for legal resource referral

[Jake Barrutia]

Hi all,

I live in Chicago and am closing on my first multi-unit property in Hammond next month. Was hoping someone could refer me to a legal resource to get connected with as I continue on this journey. My immediate question is whether it's necessary to register an LLC. From my research thus far, it sounds like it it's the right option. But would love a second opinion from a professional.

Thanks and let me know if additional info would be helpful.

[Jonathan Klemm]

Hey there @Jake Barrutia - Congrats on your first property!!!   I found that my first one was the hardest and then things slowly got easier and easier (kind of like riding a bike).  

No way do you need to register an LLC -> To be honest -> I wouldn't even think about opening an LLC until you truly have something to protect. My first two properties are still in my personal name and I actually need to switch that up finally, so thank for the reminder.

Nonetheless, you can definitely still open up an LLC, I just try to avoid putting the cart before the horse. I have a couple of good Chicago attorneys that I can refer to you as well!

[Jake Barrutia]

Hey Jonathan,

Appreciate the message! Although it’s my first property, I do have other personal assets that I’d feel better if they were protected in a worst case scenario. Unless I’m missing something?

Thanks again for the reply. 

[Zak Chariton]

I would always recommend using an LLC to protect yourself. It's not necessary in all circumstances, but usually makes sense. If this is you're first investment property and you're buying it in you're personal name, I would say you're ok not having an LLC. However, if you have a couple other investments I would form an LLC and use a DSCR loan product or something similar to close the loan in the LLC. Generally though, more protection is better than no protection.

Also, I live and invest in the NWI area and I can refer you to a local attorney for LLC questions or help point you in the right direction. Shoot me a message and we can connect.

[Eudith Vacio]

Hey Jake! 👋🏽

I invest in NWI + own a property in an LLC that I bought a few years ago. If you plan on transferring the property into an LLC (which I agree with @Jonathan Klemm, is not always necessary or recommended) then you will have to register is with Indiana at inbiz.com if you did not form it in Indiana. 

Nonetheless, congratulations on your investment in Hammond :) that's a great place with relatively low price points + low taxes that we love! 😃

[Adrien S.]

Congrats on the purchase! Hammond is one of my favorites. We manage nearly 175 units (mix of SFH and MF) there and love it. Make sure you stay on the good side of the building department and code guys and you'll have no issues. Happy to jump on a call if you want further insight into Hammond and the people you don't want to piss off:)