Advice on Entity formation and Financing

[Pramod Yash]

Hello all,

I reside in CA, but am preparing to invest with a friend of mine on a property in Houston. I  also plan to make a couple of investments this year in St Louis and elsewhere.  My eventual goal is to hold a portfolio of small multis for cash flow, but will likely invest in a few SFRs on the way to getting there in order to learn the ropes.

I am eager to get started the right way and I am posting here on this esteemed group  to get some specific advice and referrals on entity formation and related topics - i.e.  

a. series LLC vs traditional

b. California LLC vs NV or WY LLC,

c. how to hold title 

d. how to obtain financing

Since I joined this forum (and before) I have researched and read a ton of posts on this topic, but each forum post had general thoughts and suggestions (and sometimes conflicting thoughts) but no definitive advice.  I realize it is a complicated topic and each individual circumstance is unique and probably requires professional advice.  So any referrals for attorneys would be greatly appreciated.

I apologize in advance for any forum related transgressions ... still learning the protocols here.

Best

Pramod 

[Justin R.]

Hello @Pramod Yash this is a great question and its good that your looking into this now, especially because you may potentially partner. I would definitely consult with an Attorney who works in the real estate arena.

I personally got setup with a Delaware Statutory Trust from my asset protection attorney. This is a asset protection plan that works great for CA investors because is allows a series of trust to create anonymity and asset protection to your long term rental holdings. Creating numerous LLC's for a growing portfolio will eat up much of your margins at a minimum 800 dollar annual filing fee per LLC.

I know Attorney @Scott Smith is based out of Texas, and works with many CA investors

Best of luck in your upcoming ventures!