All Forum Posts by: Richard Bechtol

I think because you do not own any of the properties that you are fine to have just one LLC.

I think that the better option is to go with an Asset Protection Attorney. DIY services can cause more issues in the long run that sometimes people do not think about. Going with a good Asset Protection Attorney will give you the additional individualized guidance and resources that you do not get from something like LegalZoom.

Many people swear by these DIY companies but most individuals that do have not had to actually use their structure for asset protection. It is rare that you find someone who had a DIY structure who actually has had their structure tested and still has a positive mindset.

With that said, I think the benefit of actually using an asset protection attorney is that you will be counseled on the full scope of the structure and how it all fits together.

You have a few different options for this. You could setup a LLC that acts as the operating company to act as a property management company and keep the property in your personal name. Another option is to setup a holding company to hold the asset. You could use a trust to hold the property so that it is not transferred directly into the LLC. If you have any other questions about these options I would be happy to answer them.

Brandon,

I think you hit the nail on the head that the administration of having an LLC for each property can be overwhelming. I also agree with Jason in that it might make more sense to have something like a Series LLCs or Delaware Statutory Trust to allow for scaling while keeping administrative costs down. These entities have a single Parent entity for maintenance purposes, but they are able to replicate themselves into multiple Child Series LLCs or Child Delaware Statutory Trusts to hold a variety of assets. Based off your location tag being in Ohio a Series LLC would probably make the most sense to you.

I am looking for a good Real Estate Attorney in TN to help me navigate the new conveyance tax issues.

It might not be a bad idea to structure your business with an operating and holding company. That way as you scale you do not need to keep getting more back accounts and LLCs. Instead you can have an LLC that holds all the property and an LLC that conducts business for the properties.

I think that the answer largely depends on what your overall goal is. If you are looking to scale the business then maybe look at a Series LLC if you are content with one home then you can look at having a couple LLCs. One thing I would recommend is to having separate LLCs to keep property management separate from the asset holding business.

 The due on sale clause would be located in the contract or you could contact your lender directly.

Depending on what your goals are you might want to look into a structure such as an LLC or Series LLC for the property. The due on sale clause issue can likely be avoided with a trust of some sort. Also, with a partner you would want a good operating agreement in place to cover all possible issues that may arise down the rode. These can be between partners or event he eventual passing of one of you. A good business structure can help alleviate most of that.

A LLC is a great route to take when structuring a partnership. As stated above we don't live forever so even if there is never an issue between partners there is still an end to the partnership eventually. With that said a LLC with a good operating agreement can help to alleviate most issues by anticipating them.

With that said, a good operating agreement is going to typically require an attorney who specializes in this type of work just because templates typically don't address all possible issues that can come up.