Arizona Hard Money / LLC Set Up

[Randy Smith]

My wife and I are new to real estate investing, and we are getting ready to do our first flip.  This particular property has recently been renovated, and is about to go into foreclosure so we will have very little renovations to complete.  

We're looking at a local hard money company, Active Funding Group, and it sounds like we need to set up an LLC in order to use them. Does anyone in the BP community have experience with this hard money lender, and can anyone suggest a company to help me set up an LLC? Also, I've heard that many investors set up their LLCs in NV or DE. Can anyone suggest a strategy and why one would chose a state other than the state where the property is?

Best,

Randy

[Pamela Sandberg]

The reason many entitied set up LLCs in DE is due to the favorable tax laws. As @Stanley Bronstein mentioned, that doesn't really make sense if you are doing all your business in AZ. Feel free to PM me with any specific questions about your situation!