Questions regarding real estate attorneys and LLC's

[Timothy Casallas]

Hey guys,

I have a couple of questions that have probably been answered scattered all throughout the lifetime of the BP forums but I haven't been able to find them. It's also not very clear yet in anything I have read.

1) Let's say I am looking for properties in Atlanta, Georgia. Would I need a real estate attorney to discuss the opening of a possible LLC in Atlanta or can I get one from my home city of NYC, or where I currently am stationed in Yuma, AZ?

2) Do I need/ is it recommended to have a LLC for each property I own? I currently have 5 single family homes with no LLC and it is beginning to worry me with the potential of a lawsuit in the future. I don't want to be caught off guard, but is it too late to transfer over a property to a LLC anyway?

Any information would be greatly appreciated. Thank you!

T.C.

[Son D.]

@Timothy Casallas

1. An LLC need to be set up in the state where you have your rentals. Keep in mind that if you have a loan un your personal name and transfer title to an LLC the bank has the right to call the loan due, although unlikely.

2. How many properties per LLC is entirely up to your comfort level. Look at the cost of maintaining each LLC annually. Look at how much each property is worth. What level of risk are you willing to take?

Also just because you have property in LLC does not guarantee protection. The first thing any lawyer will try to do in a lawsuit is trying to pierce the corporate veil and go after everything.