Need Clarification With LLC
Ok i was wondering how exactly you get the Real Estate property into the LLC i dont understand how that works and if there is an age requirement for forming an LLC. My friends son is 17 and thinks if you buy the Real Estate with the LLC he can just get the loan from the bank through the LLC so he gets passed the age requirement of being 18 for getting a loan. This doesnt seem right to me so just wanted some light shed on this for me thanks.
Until the LLC establishes credit, you will likely have to personally guarantee the loan too.
thanks for the reply Panicfilms
Thanks for the reply mtnwizard. I am not familiar with land trusts. What steps are necessary to put a property in a land trust and how does it work in conjunction with an LLC? What actually holds title?Also what are your thoughts on Due on sales clause. Most people tell me that it is very rare the mortgage company will call a loan due on change of title?
Good advice though I suggest an attorney skilled at asset protection (AP) instead of RE. Counsel not specifically aware of AP language can leave you wide open to losing your assets when they set up a "generic" LLC without clauses in the Operating Agreement to limit distributions, prevent involentary substitutions of members, and many more similiar clauses, etc.
Otherwise an LLC is a fine idea, NV is best becuase it offers the most protective state law in the country for LLCs. Consider one LLC in NV owned by at least two of your family members and then having the NV LLC start LLCs in the state(s) you do business in to hold the actual property. If you have the time and assets to protect take this further and review this forum for posts regarding a three layer LLC structure which can also ensure you remain a passive owner (SE tax only on your salary, not all profits).