All Forum Posts by: Andy Nathan

Dan,

The process to create an LLC in Illinois is pretty simple. Check out the state of Illinois website.

Andy

Hey! I'm sorry, your husband lost his job. Is he looking for a new job or do you plan on using the property sales to supplement your income for the near term?

Also, before you think about generational wealth you might want to reduce your debt load. Even if you sell your property, will that be enough to supplement income and pay down debt?

I would focus on shorter-term activities to generate revenue (flipping, wholesaling, etc.) I started a GC company because it brings in additional revenue.

Another important point, are you looking for a mentor or mastermind to join? I was not sure about the title of the post.

Note: I am not a CPA or financial analyst. I hope I understood your scenario correctly.

Welcome to Chicago, and congrats on starting your journey into house-hacking! Here are some thoughts on your questions:

1. License Reciprocity: It’s great that Illinois offers reciprocity with Colorado, so getting licensed here should be a smoother process for you. Just double-check with the Illinois Department of Financial and Professional Regulation (IDFPR) to make sure you have all the specifics covered.
2. Managing Broker and Deal Visibility: Yes, typically if you hold your license under a managing broker, they’ll have visibility into your deals since they're ultimately responsible for the transactions you complete. However, how much they’ll see can depend on brokerage policies, so it’s worth confirming with them directly.
3. Transaction Coordination: It sounds like you’re used to having a support system in place, so doing it solo may feel a bit different at first. However, many agents find the transaction process manageable if they follow a checklist of key steps. BiggerPockets (BP) does have some tools and templates that can help keep you organized (like checklists for inspections, title, and earnest money). Also, there are affordable transaction coordinators you could hire per transaction if you find you need more help.

Wishing you the best in your new venture, and feel free to reach out with more questions as you dive in!

Well, it seems unfortunate and a tough situation! Since the seller is unresponsive and hasn’t signed the mutual release, you still have some options to recover your earnest money. You may contact the title company and your real estate agent. They may have dealt with similar situations and could offer guidance on the next steps. The title company might also know about any legal avenues to proceed with releasing funds. Or you can request mediation or arbitration. Some purchase agreements include clauses that allow you to resolve disputes like this through mediation or arbitration. If yours does, you might be able to get help this way without needing a full legal battle.

The home buying process typically follows these key steps:

1. Assess Your Finances: Review your credit score, savings, and determine how much you can afford for a down payment and monthly mortgage payments.
2. Get Pre-Approved for a Loan: Work with a lender to get pre-approved, which gives you a clear budget and shows sellers you’re a serious buyer.
3. Find a Real Estate Agent: Partner with an experienced agent who knows the local market and can guide you through the process.
4. Search for Homes: Browse listings and visit properties that fit your criteria (location, size, price, etc.).
5. Make an Offer: When you find a home you like, submit an offer through your agent, including contingencies (financing, inspections, etc.).
6. Home Inspection & Appraisal: Once the offer is accepted, hire an inspector to ensure the home’s condition and the lender will order an appraisal to verify the property’s value.
7. Secure Financing: Finalize your mortgage by submitting required documents and ensuring the lender clears you for closing.
8. Closing: Sign the final paperwork, pay closing costs, and receive the keys to your new home!

Each step requires careful consideration, but with the right team (agent, lender, inspector), it can be a smooth process. Do you have a specific step where you're seeking more detail or advice?

It sounds like you have a solid plan to structure your real estate business for asset protection and tax efficiency. Forming a Wyoming Holding LLC and using Land Trusts for your Illinois properties are smart moves to help shield your assets. I'd recommend consulting with attorneys experienced in both Illinois and Wyoming laws to ensure everything is set up correctly. Also, make sure the management entity's taxation as a C corporation aligns with your long-term goals.

Has anyone here gone through a similar process and have any attorney referrals or tips to share?

Is any work needed on the property? If so, a rehab loan might be a good option, especially if the property has a higher ARV (After Repair Value) in the future. With this type of loan, you may be able to put down 10-15%, but keep in mind that the renovation will add to your overall costs later on. Otherwise, the other points mentioned are valid.

That’s a solid wealth-building strategy with a proven track record! Starting a business to generate consistent cash flow gives you the flexibility to reinvest into real estate, which offers both income and long-term appreciation. Leveraging tax benefits like depreciation to scale your portfolio, combined with smart 1031 exchanges, helps you compound your investments. Patience and long-term thinking are key. It’s definitely a powerful roadmap to creating sustainable wealth over time!

Hey Gavin, it's awesome that you're thinking about real estate at such a young age! Starting slow is a smart approach, and you can consider house hacking or investing in REITs (Real Estate Investment Trusts) to get your feet wet with less capital upfront. Building a strong team—like a trusted realtor, lender, and eventually property manager—will definitely help as you scale. Saving up for a cushion is key, but remember, you can also explore low-down-payment loans like FHA to get started sooner. Keep learning and networking, and you'll build momentum!

To establish a 50-50 ownership in both the property and future profits, you'll need a formal agreement outlining each person's contributions and rights. One common approach is to form a legal entity, such as an LLC, where both of you are equal partners. In this case, you would draft an operating agreement that specifies each partner's role—your friend providing the cash and you handling the rehab and management—and that profits and ownership are split evenly. It's a good idea to consult with a real estate attorney to ensure everything is legally binding and clear to avoid future disputes.