All Forum Posts by: Dominic Bouchard

You can setup your LLC wherever you want. But..

The only thing is when its time to evict or do any other legal activity, the LLC needs to be properly registered in your state and according to your "Landlord-tenant" laws.

When you set up your structure wrongly, it could be impossible to issue an eviction judgment. 

Here's one reason for rejecting an eviction: 

Hope that helps.

@Raymond Osuna Basically when you do wholesale, what you need is a purchase/sale agreement + assignment contract. 

Signing a purchase/sale agreement doesn't sell the title but only "the right" to buy title. This is why you need an assignment agreement after signing the purchase/sale agreement: to transfer or "assign" the right to buy to another person.

BUT, as a wholesaler, you'll want to add some specific clause into the "usual" purchase/sale agreement such as:

• Include that the buyer has the right to show the property to prospects, lender, etc.;
• Include that the contract is subject to finding a qualified buyer;
• Your intention is to "assign" the contract.

Hope that helps!

@Rob Toste Sure thing!

@Rob Toste If your lawyer already made one, I suggest you tell him exactly what you said: "it's too complex and doesn't fit exactly my need". 

Normally he will make the adjustment for free. (good customer service right?)

[Solicitation Removed by Moderators]

Hope that helps!

@Daniel Busby My pleasure. I'm always looking at the best ways to approach those kinds of problems. 

If you don't mind, I'd be interested to know what you decide to do after having a talk with your professional team.  Every situation is different when it comes to new regulation.

Let me know.

Cheers!

@Tiziano Ovale If you need contract template (purchase agreement/ assignment contract) feel free to take those on our website. We're currently building an entire list specifically for real estate. (for free of course) 

Those contracts are reviewed by lawyers. Let me know.

Hope that helps!

@Daniel Busby Californian are now allowed to use marijuana for recreational use in private place. (not in the street)

As for Federal laws, it is not legal to have a pot-shop (unless for medical patients). They will start issuing licenses for those in 2018. 

As for the eviction purpose, even if it's in your lease (eviction for illegal activites), you'll need to prove "the seriousness" (couple criteria) of the problem and give him notice to correct his behavior. 

Let me know if you need a lawyer referral.

Hope that helps!

@Mike Snyder @Sean Walton One of the main reason why the corporation type matter is because of the different tax treatment between "long-term" investment and "short-term" (wholesale/flip). 

When you do "short-term," you're actually considered an "active business" subject to self-employment tax as well as your personal income.

When doing wholesale (for example) through an S-Corp, you may treat part of your net gain as a distribution wich is not subject to self-employment tax. You'll then be able to have tax advantage there.

There could be other advantages regarding your situation and the desired legal structure you want.

Also, you might want to consider other variables such as:

• S-corp tend to necessitate more paper filing and upkeep 
• The way you're going to get funding might be different with S-corp

As always, you'll need the help of professionals to assess your situation. 

Feel free to reach out for more question.

Hope that helps!

Since you're dealing with big checks, I agree that you should get an LLC to give you legal protection.

Also, I'm amazed your fellow investor didn't require it. I understand you have everything under contract (wich is good), but you'll need to avoid using your personal account for this. 

Also, you might want to consider registering an LLC as a partnership or S/C-corp depending on your situation.

You'll also need to file some SEC document for "small" offering (under $5, 000,000) but a lawyer will do it for you. 

Cheers

This isn't a legal advice, but I don't think so. 

You'll need to prove a professional negligence on the part of the appraiser and non-performance would not qualify for that. 

Honest mistakes happen all the time, and by reading your post, it's possible that the deal goes through anyway. 

Hence proving the absence of a definitive link between the appraiser action and your deal.

Maybe you could arrange something with the appraiser company instead?

Hope that helps.