All Forum Posts by: Cal Dunagan

@Michelle Manning

I echo the sentiments for asking a good real estate attorney. There are a number of great articles here on BP from an attorney I work with about this same subject. He's in Austin, too, so he would know the best entity for Texas as well. This article goes over the different LLCs and how they're taxed. After that, read over the difference between a Traditional LLC and a Series LLC for more reference. I hope this helps!

Best of luck.

@Nathan Lee

I don't want to get into the particulars of your situation, as giving legal advice without a law license is not allowed. This is definitely something you'll probably need an attorney for. This article goes over some basics for estate planning and real estate investing, but it in no way is a complete answer to your problem.

Best of luck!

@Jonathon Moore

You have a ton of good advice here in the thread. I found a few articles that might be helpful for you when trying to decide what type of pass-through entity you want to use for your partnership. This article is about the different type of partnership entities real estate investors normally use. After that, read over this article that goes into a bit more depth. If you're still wary about LLCs, maybe look into what is known as a Delaware Statutory Land Trust. Hope this helps!

Best of luck.

@Soniel Estime

There's already so much great advice in this thread I don't really know how much I can help. If you do decide on the partnership route, I agree with Shiva. You're going to need an attorney. And as much as you might all want to have the same lawyer, it's not advisable, as in the future you guys may have a conflict. This is a great article about legal entities and partnerships that you'll definitely want to check out before you go too much further. Also, read through this article as well for more information about forming a partnership with your buddies.

Best of luck!

@Luca Giani
Hey Luca, I'm back for more help! I found another article think is right up your alley. It's a FAQ regarding legal questions for investing across state lines. Let me know if this is what you're looking for.

@Lane Smith

Not sure how much this helps, but since you're using Fannie, I thought this article would be helpful for you. It goes into some changes in Fannie May's Due-on-Sale Clause. Hope this is helpful.

Best of luck!

@Ryan Gravel

I'm don't think you stated, but are you looking to flip your investments? This is a good article regarding specific calculations you should make before you decide on the best property. Hope this helps.

Best of luck!

@Charles Paddock

From what I've read, the Series LLC is going to be your best option. There are a number of great articles here on BP regarding this decision making process. This article is a good primer for pass-through entities (which the LLC and C Corp are considered. After you're done reading that, this article goes into more detail regarding the differences between these pass through entities for real estate investing purposes. Next, you'll want to read about the different types of LLCs and how they might be used. Finally, this article goes over the difference between a Traditional LLC and a Series LLC and which is best for a RE investor. Hope this helps.

Best of luck!

@Jocelyn Doumani

You have a ton of great replies in this thread, so I don't know how much more I can help. This article might be helpful if your drug dealer tenant decides he doesn't want to move out.

Best of luck!

@Jonathon Moore

There's some good advice here. There are a ton of great article on BP regarding LLCs. It's a fairly complicated topic, so I'll try and direct you to the right place. First, since this is a partnership you're considering, take a look at this article regarding business entities for partnerships. Next, this is a good primer for pass-through entities (which an LLC is considered). Then you'll want to consider what type of LLC is best for your situation. If you're planning on investing in multiple properties, which I think is the goal here, I would consider a Series LLC. Here's a good article about the difference between a Traditional LLC and a Series LLC. Finally, the biggest reason you want to look at LLCs is asset protection. However, you're going to want to do more than setting up an LLC when you're protecting your assets. This article goes over the different strategies a RE attorney would use to protect your real estate investments. Hope this helps.

Best of luck!