However, she is certainly an individual I am planning on reaching out to, as we have developed considerable dialogue since we first met in person last summer.Again, thank you for the input and experiences you have shared!

Hi All,When establishing a LLC or a Corporation to either buy and hold properties or wholesale properties, what legal concerns should I take into consideration when forming either of the two?

If you have mortgages on any of the properties, check to make sure the bank will not enforce the " due on sale" clause. changing the deed and ownership over to an LLC. will trigger that because they consider the property " sold" then.Depending on the state laws where you invest, having all the LLC's under a parent LLC does not offer you the protection and may still be considered as one entity for all the properties and can be touched.

This is a valuable consideration because if the values are lower than conventional finance minimums that will increase the time on market and difficulty of exiting to a primary buyer.  

Coming from a background in finance, I know that I will, one way or another, be able to find either a single partner, or group of investors who aren't afraid to pull the trigger, and who are interested in actually developing land, not destroying it, and creating beautiful properties to be sold along with beautiful margins.I'm also curious to know if any of you have tackled projects similar to this (I know I haven't given out the secret ingredient), just speaking of land acquisition / development / selling properties, repeat.Thoughts?

Almost pulled the trigger on a 12 plex, in a very run down city not far from me.

@David JenkinsCap Rate = Net Operating Income (NOI) / Price of the PropertyNOI = Annual Income - Operating Expenses NOI does not take into consideration debt service, capital expenditures, or depreciation,  Example:  Price $1M, Annual Income $200K, Operating Expenses $100KCap Rate = ($200,000 - $100,000) / $1,000,000 = 10%

Yes - a good consideration to be sure, though still very early in the consideration process.

The best part is you'll be the only offer on the table for consideration, so your chances of getting it accepted are much higher :-)CASE STUDY: 1139 Clinton Rd, Sacramento, CA 958251139 Clinton Rd is a duplex in the 95825 zip code near the Arden Fair Mall and Sac State.

If they accept, I'm thinking we might pull the trigger.