Best and most affordable to form LLC

[Martin Nowak]

Hello! I’m a novice that’s ready to start leveraging. Here’s a list of questions and my situation.

I’m 54. I’m still working and have slowly acquired single family homes and have them all rented.

I own 5. 2 of the 5 are paid off. I own a piece of land that’s zoned commercial that I’m carrying a mortgage on. Plus I have my primary residence. I’m very eager to build a commercial building (beer garden) on my property.

Here’s my questions:

1. I was told each property should be in its own LLC. What is the most economical way to do this and is an online service adequate? If so which one ?

2. What is the smartest way to leverage all but my primary residence to get the building built?

3. 3 of my properties have 30 year fixed rates of 4.625 - 5.5.(land) should I refinance?

Any recommendations would be fantastic!

Thank you!

[Mike S.]

@Martin Nowak

First, if you want to refinance, do it while the property are under your name. It would give you better lending conditions.

Second depending on your state, the outside protection of single member LLC may be less than adequate. It is often suggested to get all of them owned by a WY LLC that would give you charging order protection and anonymity.

Last, you can create the LLC yourself online, however I would suggest that the operating agreements be drafted by an asset protection, real estate attorney working in agreement with a CPA.

You can get free initial phone consult with most of the big guns in that field that would at least guide you towards the proper global structure of your entities.