All Forum Posts by: Charlie Redding

@Steve Vaughan - Great advice! Thank you.

Hello all,

I'm one of three partners purchasing a duplex. We formed an LLC but from what we're finding out we can get much more attractive financing if we purchase the property in our three personal names.

My question, is how should we structure the operations of the business? Can we have the operations in an LLC (rental income, business expenses, etc.) while having the property held in our personal names? Or should we maintain our books separately and just ditch the LLC as the property is in our personal names anyway?

Any advice is appreciated.

Thanks!

Hi everyone!

My two business partners and I have a multi-family currently under contract. We have formed an LLC, but I'm interested in what sorts of legal documents we need/should have. An LLC operating agreement is easy to come by, but what types of agreements are necessary regarding exit strategies, individual responsibilities, etc.

Also, can anyone point me in the right direction for various landlord/tenant document templates?

Any info would be really helpful.

Thanks!

@Alex Chin - That's fantastic! Thank you very much for the recommendation.

Thanks @Suzanne Nelson! I appreciate the recommendation.

@Jason Steiner

Hello all,

My two business partners and I have formed a RE company and have been actively searching for our first multi-family investment in the greater Seattle area (between 200k and 400k). We have put in four offers so far but are not impressed with our current RE agent.

We're hoping for recommendations for an agent in the Seattle area. We want to find someone that we can develop a long-term relationship with, closing multiple deals per year once we get rolling.

Does anyone have recommendations they would be willing to share? Please respond only if you have recommendations, not if you are a RE agent.

Thanks a ton!

Thank you all for the info! This is exactly what I was looking for.

@Ryland Taniguchi This is great. If we quit claim the title to the LLC, does the debt stay with our personally, but the building and the operations go into the LLC? If so, it would seem strange that the bank would allow the debt and the asset to be under separate ownership. That's a pretty impressive strategy for the Seattle market. We're looking for a long-term buy and hold play with possible refi opportunities to roll our down payment into another buy and hold in the near future.

@Account Closed I read this elsewhere - that an insurance policy is a must. My biggest concern with the LLC is that I want our personal assets protected and the corporate veil to stand. Any thoughts on the cost/benefit of just getting an umbrella policy and foregoing the LLC altogether?

Hey all,

Two partners and I are looking to invest in multi-family real estate. We live in the Seattle area so prices here are astronomical -- hence the need for three partners. The benefit, of course, is that rental rates are also quite high.

We're working on financing and structure options. We're planning on forming an LLC to provide protection against personal liability (assuming we are taking care of the property, of course). However, I'm having trouble finding information on lending options.

Because the property will be held in an LLC, are conventional mortgages off the table for us? 4% fixed for 30 years sounds pretty nice. Conventional financing through a business bank for an LLC would be a 10 year note, fixed for 5, with a 25 year amortization.

All three of us will have ownership in the property, loan, and LLC.

Any advice would be extremely helpful!

Thanks!