Surprised by success- now need advice
Background: Two co-workers and I were purchased a house and rented it out. We didn’t know how the investment would do, but it is turning out great. We currently have an offer in a duplex and if we get it will start to receive some serious cash flow every month. The 3 of us are extremely tight so we really did nothing to formalize the first house, we just did it. Now we would like to formalize.
Our plan: 1) create an LLC and put all mortgages and deeds into it 2) put our name on all the deeds 3) work with a lawyer to make some type of business agreement 4) try to make it scalable to where we could raise capital if needed
What are we missing? Does anyone have a recommendation? What does everyone think of legal zoom for doing this stuff?
The first part of this will be determined by the lender - are you taking out an investment loan or something else and will the lender allow an LLC to either hold title to the property or be used as a pass-through. If it's a requirement that all of you go on title you may want to hold it as tenants in common with an agreement that allows one or more of the co-owners the ability to buy/sell with right of first refusal or otherwise dissolve the deal. This part is important because it will be almost impossible to find a buyer for the 1/3 ownership interest if one of you want out. A well thought out entity might protect against some liability and allow pass-through of revenue and expenses. In any case spend a few dollars in advance for legal and tax advice, as I'm not providing either :-)
Aut sunt blanditiis alias vero. Eum inventore officiis dolore asperiores quia. Ut quis perferendis et. Quasi ut quos incidunt qui aut. Dolor ut iure voluptatem sunt qui omnis distinctio.
Voluptatem cum aut quod rerum omnis nihil quaerat facilis. Eveniet et vel rerum. Itaque et illo ea et omnis sed laudantium.
Et ducimus illo quasi nihil. Quae ea consequatur ea quia accusantium perspiciatis dolore. Et quibusdam magnam ut consequatur repudiandae nihil. Quas ipsam magnam quos impedit. Dolores animi dolores nihil molestias reprehenderit.
Sint facilis autem id cum. Beatae ducimus possimus repellendus. Quis dolorem eveniet sed praesentium. Eligendi laboriosam eos sunt.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...