Starting in Note Investing - couple quick Qs on LLC

[Charley Tauer]

Good afternoon,

I've been a lurker for a little while, but we are finally serious about getting into the note investing world. I've read a number of the popular books, done a few online courses from people like Dan Deppen, and consumed everything I can online. I'm going to be working with my father in law on this, as he's looking to diversify his traditional real estate investments and I'm looking to learn this space. 

1) Would you recommend (or recommend against?) buying mortgage notes with an LLC? I was looking to create one for this piece of our family business, and didn't know if buying in my own name was a good idea since I would be using his funds / business funds.

2) If so, does it matter if I file the LLC in my home state of Maryland and hold notes from various other states? I know with traditional RE having the LLC in the state of the property often makes sense, but not sure if that is different with notes.

Thanks! Open to any and all suggestions

[Chris Seveney]

Quote from @Charley Tauer:

Good afternoon,

I've been a lurker for a little while, but we are finally serious about getting into the note investing world. I've read a number of the popular books, done a few online courses from people like Dan Deppen, and consumed everything I can online. I'm going to be working with my father in law on this, as he's looking to diversify his traditional real estate investments and I'm looking to learn this space. 

1) Would you recommend (or recommend against?) buying mortgage notes with an LLC? I was looking to create one for this piece of our family business, and didn't know if buying in my own name was a good idea since I would be using his funds / business funds.

2) If so, does it matter if I file the LLC in my home state of Maryland and hold notes from various other states? I know with traditional RE having the LLC in the state of the property often makes sense, but not sure if that is different with notes.

Thanks! Open to any and all suggestions

1. Yes for notes this is an area where I absolutely suggest you use a LLC.

2. I would register in Maryland as your home state. For note investing it is different than owning property in other states where you also need to do returns in those states (note not a CPA). So keeping it in your home state to me makes things a lot easier.