All Forum Posts by: Jarrod M.

I'm new to the boards, but I have to say that @Bill Gulley consistently gives sound advice.  To answer Larry's question, yes it can be done, if done correctly.  Bill nicely lays out all the angles that will need to come together, and an experienced attorney should guide you through each of those angles to protect your interests.   

You'll typically give up control rights in the LLC if you are looking for the type of liability shield you describe. Pay particularly close attention to what your control rights are (if any), what situations you are required to contribute capital to the LLC, and what indemnities are you getting from the manager/managing member. There may also be situations where you want the ability (i.e. your choice) to contribute more capital if the LLC needs it. Watch for situations where other members could elect to contribute more, which could dilute your interests if you chose not to contribute. Obviously lots of moving parts, so certainly grab a good attorney to help you out.

Thanks for the welcome @Ann Bellamy  and @Jon Huber 

I can confidently say that the phrase "There is always room for another attorney" has never been said to me, so I know this is the place for me!

Alex, I am an attorney, but not a California attorney, so I'll speak generally. California can be a little quirky at times, so you should definitely contact your closing attorney to help you out. Generally speaking, just reserving a name is not enough. For an LLC to exist, most states require a certificate of formation to be filed with the Secretary of State (or some equivalent government entity). If the LLC is formed in the same state as the property being purchased, then that's typically the only filing you need (along with a fee). If the LLC is formed in a different state, then the LLC would also need to be qualified to do business in the state where the property is located. These fillings can be done very quickly in most states (often same day). Your local attorney should be able to help you out.

The LLC would also need an operating agreement describing how it is managed and how money is shared among members. If you are investing with others through the LLC, then that document would need to be negotiated, agreed upon and executed. If you are the sole member, then this document can also be done very quickly.

Bottom line is that there are steps you'll need to take, but if you use an attorney in your area, they can be done quickly and you have plenty of time if you are scheduled to close on Monday.

Hope this helps.

Jarrod

Thanks @Shaun Reilly for the REIA leads. I'll definitely check them out. It would be great to connect with some Mass folks in person.

Hey there BP community!  I'm finally getting around to my first post and wanted to say hi and thank you.  I came across BP through a Google search a little more than a month ago and I've been devouring the podcasts, e-books, and blog posts ever since.  

A little about me:  I've been in the commercial real estate world for just about a decade .... as an attorney.  My latent passion for real estate investing was recently rekindled and here I am ready to dive in and start creating my own deals.

I've been getting out looking at open houses to get a sense of my local market, crunching some numbers, and reaching out to people to start building up some contacts in the residential real estate world.

My ideal path is to do some rehabs to generate some more capital and then move to buy/holds.  I see myself in the commercial world eventually since the analysis is more intuitive to me.  I'm keeping any open mind though since the rehabs around Boston seem hard not scoop up unless you are a cash buyer.

I'm super excited about this site and would love to connect with others.

Jarrod