All Forum Posts by: Marc Boiron

If you do not dissolve the LLC, then you will continue to have to pay the $300 fee to the State of Delaware and for a registered agent in Delaware until your LLC is deemed to be forfeited. If you simply ignore the fees you have to pay, then you will continue to owe the fees until they are paid, you will be charged a $125 late fee and interest will accrue at 1.5% per month thereon. If you never come to the U.S., then I suppose it does not matter. However, you never know what life will bring.

If you use an attorney, the cost to dissolve an LLC will likely be approximately $600-$700, including attorney and filing fees.

@Tim W., as @Brian Adams indicated, you should ask the lender whether it will require you to have a Delaware LLC. Depending on the loan amount and what the lender plans on doing with the loan afterwards, the lender may require you to have a single-member Delaware LLC. Assuming you do not need a Delaware LLC, then form an Ohio LLC and pay $800 to get qualified to do business in California. You do not want a California LLC. The California LLC laws have a lot of issues that you would rather not deal with if you can avoid it.

Also, as a corporate attorney, I have come across many situations where people have tried to use legal zoom to form an LLC. In even the simplest cases, it is a massive mistake, and I could give many examples of significant issues it has created for the person who used legal zoom. Given that I am not looking for your business here, I can objectively say that I would strongly recommend that you find an attorney to form your LLC.  If you find a good attorney, he or she will have a form single-member LLC Agreement that requires almost no changes to it and will cost you almost the same amount as legal zoom, but, if for some reason you have special needs of which you are unaware, the attorney will be able to identify and address them in a way that legal zoom cannot do.

As an attorney admitted in Delaware and who has given many legal opinions for lenders in real estate transactions, I have never seen or heard of someone using legal zoom for a real estate transaction of any significant size.

Hi @Account Closed and my apologies for the ridiculously slow response!

It is funny that you mention Middletown; I went there for the first time a couple months ago and loved it.  There is enough to do there, but it is still in the suburbs - really nice.

I hope your investing in Houston has been going well.  I think it is a great place to invest.  That being said, I have run into the same issue many others run into - a terrible property manager.  I think I will be looking for a new one soon...

@Isaac F.

I am not sure whether you previous message was intended for me. Either way, I have not invested locally, but I am never opposed to it. Shoot me a message with you email address and I will reach out to you. Thanks.

@Derek M.

Thanks for reaching out. It really is a small world. What brought you to Houston? What type of investing are you doing in Houston?

@Stephen Turner

My apologies for the delayed response. It sounds like you did the smart thing starting off with an easier rehab. That is the approach I would like to take as well.

I do not have a great idea of the market. The rental properties I purchased are in Conroe, an area where I know substantial development is occurring, vacancy rates are low, rents are high enough to meet the 1% rule, and schools are good in the area. After having confirmed that information, I was comfortable that the area would be a good one to invest in. But I would not generally say that I have a good idea of other areas of the Houston market.

Let me know where you decide to go.

I am in the process of purchasing investment properties. The loan documents that I signed required that I sign an undisclosed debts document, providing that I agreed that I did not have any undisclosed debts and that I would not incur any additional debts prior to closing. However, I would like to make additional investments during this time period. In addition, I want to seek a line of credit from the bank, but I am concerned that it will cause an issue with the lender. How does everyone else get going with the purchases of several properties while working with conventional lenders?

Thanks in advance for the responses.

Hi @Stephen Turner

Welcome to you as well and congrats on your first transaction. What kind of deal was it?

I will keep an eye out for you, and when I am back in Houston (a year and a half from now) we will hopefully find some time to meet up.

Hi @Cuong Le

Thank you for reaching out. I am buying the homes in Conroe and using conventional financing, 20% down. I figured that I would keep things simple on my first transactions, get some experience under my belt, then figure out other financing strategies.

Are you personally managing your properties in Houston, or do you have employees doing the management? Where are your properties in Houston?

@Jessica Swingle

Please see my earlier post. I had not noticed that your name was not linked to the post. I appreciate your reaching out.