All Forum Posts by: Account Closed

@Aaron K. Thanks for your feedback. So is it possible to raise the debt at the individual level but jointly, buy the asset then transfert the asset's title to the LLC? (with the debt staying at the individual level)

Hi,

We are planning on creating an LLC to invest in real estate with 3 other partners and we are looking for a real estate attorney with experience in that domain in the NYC area. Do you guys have any recommendations? More generally, we're starting to build up our RE team and would love to connect with investors that have been through the same process in the area.

Thank you

Hi everyone,

We are 4 persons planning on co-investing in real estate (buy & hold of multi-family properties). We are currently thinking about the best approach to do so. After a bit of online reading, it appears that the traditional road is to create an LLC with the other investors, which will purchase the asset. The LLC will be a pass through entity and will be taxed as a partnership (i.e. each partner will be taxed directly and individually). I however have a few follow-up questions on that matter:

- Is the debt / mortgage raised at the LLC level directly or is each person raising debt individually and then providing cash to the LLC for the purchase? (I would assume it the former)

- Does having an LLC impact the mortgage process in any way and the terms that can be negotiated? (i.e. are rates, tenor, etc different if we use an LLC?)

- What attention points should be raised and discuss in our situation?

We will of course discuss this subject with a real estate attorney but we wanted to brainstorm a little bit with members of the forum before so we can ask all relevant questions to the attorney when we actually meet.

BTW, if anyone has any good contact of real estate attorney in the NYC area, please reach out (I will also ask that in the specific local real estate forum)

Thanks