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Updated about 4 years ago on . Most recent reply

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Frank Von Arx
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California Investor first steps - DST vs LLC

Frank Von Arx
Posted

@Scott Smith or anyone else who can help let me know! Living in California and looking to get started BRRRRing out-of-state SFRs this year. Want to get everything organized and structured correctly from the beginning so that scaling is as easy and efficient as possible later on. From what I have read, my understanding is that the best way to do this is to create a single LLC to perform operations, and establish a DST to hold titles to properties in a series (please correct me if I misunderstand though!). I have a few questions relating to the actual process and first steps:

1. Which do I create first, the LLC or the DST?

2. Who should I contact first for help getting things up and running, a CPA or an attorney?

3. Do all the child trusts have to be identical and have the same people and involved?  For example, would it be possible for 2 people to be invested in a property in one trust, and then have a third person invested with them in a different property/trust in the same series?

4. Is it possible/easy to remove one person from a property/trust later on?

Any help is appreciated, especially with the first two questions, feel sort of stuck trying to find the right first step at this point!

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