All Forum Posts by: Lisa Foreman

Thank you everyone for the great advice and explanations!

I need to register my Virginia LLC to do business in Texas. The SoS website requires me to fill in the contact information for my registered agent. I don't have one. I saw one lawyer advertise reigstered agent services for $95 per year. Is this fair? Can I just ask a friend to do it? I don't see what work is involved, other than forwarding mail. Is a registered agent taking on any legal or other risk?

Thanks in advance for any help or advice.

Yes we are just using an LLC to jointly purchase. My goal is to get a loan for more than 50 percent of purchase price. We have identified several properties owned by one person. Hoping a commercial loan will have more favorable terms than NASB. Sounds like we need to get in writing that it's non-recourse.

thank you for your clear reply!

the difficulty selling one property in the future did not occur to me

My friend and I want to buy several properties in the Phoenix area. If we bundle them together and apply for one commercial loan does that meet the non-recourse requirement of buying property with a self-directed IRA? We want to buy the properties with an LLC owned 50% by me and 50% by my friend's SD-IRA.

Last year I got a loan from NASB using my IRA, but they are requiring 50% down at this time. We only want to put down 25%. I thought if we went with a commercial loan that would give us the option of more lenders but still allow us to meet the non-recourse requirement.

Has anyone done this?

Thanks in advance for the help.

thank you. I may have to use one of these other lenders so this list will really help. I still wonder, though, if anyone has experience working around the dry close issue with NASB. 

Hey BP,

My friend and I purchased a townhouse from our self-directed IRA's. The property is in Virginia. We applied for a mortgage through NASB. When it came time to actually buy the property we ran into a road block. We could not officially sign the papers until NASB turned over the money, but NASB would not turn over the money until we had signed the papers.

Fortunately, we were able to get a short-term loan for the balance, officially buy the property, get the NASB mortgage, and then pay the short term loan back within a very short time frame.

Now I want to buy another property with another friend using SD-IRA's and I don't want to go through the same process. How do I work around this issue? Should I be shopping for a different title company or a different lender? I heard NASB is the most experienced for SD-IRA's and I like working with them in every other aspect. Has anyone out there successfully done a 'dry close' without a short hard money loan?

Thank you in advance for any advice you have.

Thank you both for the advice!

I'm looking at the application now and it definitely is insurance coverage for the property. I wonder if it's a Texas thing? I didn't have this issue in Virginia. Wonder if selling it to an LLC would fix the issue.

I just bought a SFR in Texas with two partners. We paid cash so we are working out the property insurance after the sale. Two of us are investing from trusts holding our SD-IRAs. One partner is investing in his own name. We did not form an LLC - at least not yet. The partner investing outside his IRA got the policy in his name and added us as 'also insured'. However, the contract states that he is the only one covered by 500k of liability insurance. We decided to go ahead and accept the policy so we can get a renter in there as soon as possible. We can shop different insurance later. Is this normal? I thought an LLC would have limited value when buying property from a trust but I didn't foresee this wrinkle. I don't want to go overboard making legal entities but if I need one for this investment then I anticipate needing four separate LLCs because I'm investing or planning to invest with different combinations of partners. I'm so early in the process that I don't want my cash flow to be lost to legal and filing fees if it's not necessary.