Real Estate Agent · Houston · Member since 2023 · 10 posts · 5 votes
Hey everybody! I have been a biggerpockets fan for a while now, but just now wanting to get more involved. I have been a moderately successful real estate agent for 2 and a half years now. I am a full-time teacher in the Houston area. I have been really drawn here because I have recently aquired a vacant lot (7800+ sq ft) in Taylor, TX. about 30-45 minutes north east of Austin. It is zoned for commercial development, i've attached the examples that are allowed. This property is going to be owned by me and my 3 siblings, It is in my name now. We want to place it in an LLC or trust, so brings my questions... For financing a commercial apartment building, is it best to build it first then place it in an LLC or trust or put it in trust/llc first then build it. We dont care which direction we do it in, we just want whatever option is fiscally the smartest
Hey everybody! I have been a biggerpockets fan for a while now, but just now wanting to get more involved. I have been a moderately successful real estate agent for 2 and a half years now. I am a full-time teacher in the Houston area. I have been really drawn here because I have recently aquired a vacant lot (7800+ sq ft) in Taylor, TX. about 30-45 minutes north east of Austin. It is zoned for commercial development, i've attached the examples that are allowed. This property is going to be owned by me and my 3 siblings, It is in my name now. We want to place it in an LLC or trust, so brings my questions... For financing a commercial apartment building, is it best to build it first then place it in an LLC or trust or put it in trust/llc first then build it. We dont care which direction we do it in, we just want whatever option is fiscally the smartest
You mostly do an LLC for your protection. I have several different LLC's because if a tenant or someone wants to come after me for someone they cannot sue me for everything I have just what is in that LLC. I would build and then refinance into an LLC.
I wish I could answer your question with confidence, however, personally I would put everything in an LLC before moving forward. I'm curious to know what better answers you might get so I'll be following this post!
Hey everybody! I have been a biggerpockets fan for a while now, but just now wanting to get more involved. I have been a moderately successful real estate agent for 2 and a half years now. I am a full-time teacher in the Houston area. I have been really drawn here because I have recently aquired a vacant lot (7800+ sq ft) in Taylor, TX. about 30-45 minutes north east of Austin. It is zoned for commercial development, i've attached the examples that are allowed. This property is going to be owned by me and my 3 siblings, It is in my name now. We want to place it in an LLC or trust, so brings my questions... For financing a commercial apartment building, is it best to build it first then place it in an LLC or trust or put it in trust/llc first then build it. We dont care which direction we do it in, we just want whatever option is fiscally the smartest
You mostly do an LLC for your protection. I have several different LLC's because if a tenant or someone wants to come after me for someone they cannot sue me for everything I have just what is in that LLC. I would build and then refinance into an LLC.
I wish I could answer your question with confidence, however, personally I would put everything in an LLC before moving forward. I'm curious to know what better answers you might get so I'll be following this post!
Hey everybody! I have been a biggerpockets fan for a while now, but just now wanting to get more involved. I have been a moderately successful real estate agent for 2 and a half years now. I am a full-time teacher in the Houston area. I have been really drawn here because I have recently aquired a vacant lot (7800+ sq ft) in Taylor, TX. about 30-45 minutes north east of Austin. It is zoned for commercial development, i've attached the examples that are allowed. This property is going to be owned by me and my 3 siblings, It is in my name now. We want to place it in an LLC or trust, so brings my questions... For financing a commercial apartment building, is it best to build it first then place it in an LLC or trust or put it in trust/llc first then build it. We dont care which direction we do it in, we just want whatever option is fiscally the smartest
You mostly do an LLC for your protection. I have several different LLC's because if a tenant or someone wants to come after me for someone they cannot sue me for everything I have just what is in that LLC. I would build and then refinance into an LLC.
@Rojelio Raymond Ayala (this comment is based on information gathered BUT I am not a legal guru so this is just something to think about) As mentioned above the LLC is for your protection. If you purchased the property and have a mortgage on it, it would be best to put the property in an LLC before beginning the development because of the due-on-sale clause. If it were to happen, the property would be a lot less before development would begin. I came across this post and I thought that it might help clarify things. I thought what Nathan Click had to say was very helpful. He may be a good resource to ask as well :) With an LLC do you use commercial lending? (biggerpockets.com)
Thank you All!!! this is why I joined this community. I failed to mentioned that the property is paid off and I have 100% ownership, on the financing side I was thinking of doing Land Equity Loan to help finance the complex, thoughts on that? and I understand that this is simply advice and not financial guidance, appreciate it everybody