BRRRR Out-of-state with LLC

[Carl Griffin III]

Hello BiggerPockets Family!

So I am forming an LLC and came across a couple questions, and who better to ask then my fellow REI community.

1.) How would you actually acquire the property? Do you send the property managers on your behave? Hire someone to sign all the doc for you? Have the docs sent to you? Whats the process for that?

2.) How will both investing out-of-state and having an LLC differ while doing the BRRRR strat? Specifically with the Refinance step? Will I have to have more properties at once? Can i still get a HELOC or some line of credit period? And since I wont be able to phyiscally be at the bank, how would that process work as well?

Thank you in advance, and if you would like to know more about me and my business plan and want to be a potential investment partner, please don't hesitate to PM me! 

[Lee Ripma]

You don't NEED an LLC to buy RE. If you plan to hold title in one the only kind of loan you can get is a commercial loan. There are lots of questions here, I'll try to answer some.

1) You would buy, title co closes it. A property manager doesn't close the property, they can go look at it for you. You sign the docs yourself, you don't need to be present to close a deal. You'll find out the process once you buy something!

2) LLCs need commercial financing. You'll refi with a commercial loan. You can't get a HELOC, that is for primary residences. You might be able to take a line of credit off the property for rehab if you buy cash, maybe. You don't need to be physically present to open bank accounts or do refi, but you'll probably need to make a trip to meet the people you're working with at some point.