All Forum Posts by: Cody Backus

Daniel, 

Working locally with other flippers who can recommend good lenders to work with as they have been using them with regularity. There are several local lenders that are very reputable and used with frequency. It is mutually beneficial to work with a local lender who knows the market and can help if/where needed.  A lender can be a great addition to your team once vetted and especially after a working relationship is established. If you would like me to help put you in contact with some lenders that my clients have used I can do that. I also have clients that are lenders that I can connect you to.  

Thanks @William Hochstedler for the shout out. @Nicole Stoddard, we have formed thousands of LLCs for real estate investors here in Utah and would be glad to help you set this up. Feel free to reach out to me at our office or send a private message and we can discuss in greater detail.  

Steven, could you elaborate on your question? LLCs are filed at the state level. Every state has similar but different processes for filing. But filing a name with the state isn't everything that must be done to effectively create a company that provides limited liability and just filing a name at the state does not provide you the asset protection you seek to begin with. There are a lot of factors to consider when creating an LLC and you should seek a good professional to help you do this the right way. Anyone that says "just do it online" doesn't understand all of the things that people do wrong that later really hurts them. Pay to do it right the first time but do it at the right time.

Ketan Parekh , you file the LLC with the state as any and every business does. This creates a legal entity that acts like a bucket you can put things in. When you sign a quit claim deed or warranty deed you convey or transfer ownership in the property from your personal name into the LLC. When this transfer deed is recorded at the county, the new owner of record will be the LLC and the chain of title will show you transferred from your personal name to the LLC. This is done to help create some privacy and certainly asset protection. Hopefully this helps clear up the confusion regarding how things are named, where they are recorded for the public to see and how title/ownership is transferred.

@Jake Simkins, most people are not "double closing" as you say because it is illegal the way it used to be done.  @Justin Morgan gave you an accurate response to that. There are three ways to "wholesale" a property, and not "double close" as you have stated. We have a video on our website that teaches how this is done in Utah. It is fairly simple once you grasp the concept. My office (as a title officer) closes on more than 20 wholesale and seller finance deals per month.  Shoot me a PM or give me a call and I can discuss with you to get you headed in the right direction.  

Welcome Chase Griffin to the BP community as a Utah investor. You are in a great market there in Ogden loaded with deals. Here's to your success as a real estate investor!!

@Ashley Benning, for partnering with your friends in Utah, you would be able to form a Utah LLC with your partners and invest in multiple properties, getting you the asset protection while limited filing costs and administrative costs that apply in CA. It only costs $15 p/year in Utah to renew LLCs and the CA Franchise tax will not apply to you or the LLC so long as all activities take place in Utah or other states.

This is one way of structuring the arrangement between you and partners in Utah, and other states.  At a minimum, you should be sure you and your money and your friends' money and interest are secured (using either proper loan documents or how you take title) and you should also have a very good operating agreement or joint venture agreement to clarify the many points of joint ownership in real estate. There are tons of things to consider and many things to be flushed out.  Many partnerships tank because they just don't address situations up front that will eventually come up. 

We have a link on our website that is educational regarding the structure of partnerships that you may find very helpful.  You can PM me for more info if you'd like. 

@Henrietta M., my name is Cody Backus. I am a probate attorney here in Utah and can help you with this.  I work with @Jeffrey S. Breglio 

who was recommended be @Cody Steck. Give me a call or shoot me an email and we can get started on the probate process right away. 

@Georgios Katehis, There are a lot of documents that are signed at closing. Loan documents, Deeds that transfer ownership, and much much more.  Perhaps you could express your concern or doubt regarding the closing more specifically so that someone here does not have to provide an entire course on title closings. 

Closings typically take place at either title company offices or at law firms depending on the state.  

Best advice I can give you, get involved with a local REIA event and go and network with some people there as well. Great content and education for very low costs.

Amos Clay downing , best advise I can give is get involved with local investment clubs. Search "REIA" in your area and see if through that, meetups.com and bigger pockets you don't get connections and education and mentor ship you need. There's a ton of willing people to help on your journey. Best of luck!!