Real Estate LLC Formation

[Tyler Hahn]

Hello everyone! I kinda have an idea of the path I think would be good but I love the feedback I get from the members here!

So, I want to invest in properties out of state (I live in PA, want to invest in OH, IN, etc). I have been talking to some lenders about different products they offer and some suggest they only lend to LLC's/business entities. So I would like to get myself an LLC to put my next properties in but I'm not sure the best way to handle that.

I was thinking a local attorney could help out but if they don't know a great deal about real estate investing then I'm not sure if that could be an issue? I also was thinking about an automated website that helps you make one but of course that's gonna be very general and not specific or prepared as a legitimate person helping out.

Does anyone have any suggestions or recommendations for the best way to move on and start an LLC?

Thanks all!

[Megan Templeton]

Hi there! I would definetly recommend working through an LLC for your new property. For LLC formation, you have a few options: you can work with a document provider like Legal Zoom, do it yourself through forms on the Secretary of State website, or go through a traditional law firm. I recommend going the law firm route. Trying to do the forms yourself the first time could be confusing and you may not be aware of all the wording needed in the operting agreement, the annual compliance costs/requirements/etc. Using a document provider like Legal Zoom may work in some cases but the docs are templatized and not set up to be individual to your business or scale well. You also wont have a team to guide you as your bix grows or how to stay compliant. I recommend a traditional law firm so you have an advisor freom the start and as you grow, they can customize your set up, and help tackle any issues that come up as you go. Royal Legal Solutions is a good option to check out. They operate in all 50 states and offer customized LLCs with anonymity.