HELP...HMO Type Lawyers, Trust or Single LLC? - Posted by Paul (Bklyn)

Real Estate Investing Real Estate Law
#1

Posted by JHyre in Ohio on February 21, 2002 at 12:44:00:

  1. The lender needs to be aware that you intend to put the deed in the LLC’s name. They will either ask you to sign a personal guarantee or charge a higher for the loan being in the LLC’s name w/o a personal guarantee (aka “nonrecourse”). The initial contract to buy should be in the name of the LLC or in the name of a land trust of which the LLC is beneficial owner.

  2. BEFORE!

  3. Search the main newsgroup for prepaid legal services…people have commented on this topic in the past

  4. Lawyers tend to charge $1000 to $1500 to do that…Bill and I both charge less. You could also buy Bill’s LLC course for $150 and do it yourself.

  5. Set up LLC first…usually takes 4 to 10 weeks, costs @$125 in most states for filing fees, though some are more expensive (e.g.- CA & IL). Look at your state’s “secretary of state” website, it will have plenty if info.

John Hyre

#2

HELP…HMO Type Lawyers, Trust or Single LLC? - Posted by Paul (Bklyn)

Posted by Paul (Bklyn) on February 20, 2002 at 23:05:32:

I’m looking to buy a legal two family building in New Jersey. I will be buying the conventional way as my primary residence. I want to protect myself from any liability so I am considering putting it into either a LLC or Trust.

Questions:
1)I most likely have to put the mortgage in my name when I buy it, How can I initially get the deed into my LLC or Trust name? Wouldnt the lender have an issue with this?

2)At what point would it be feasible to obtain a laywer before or immediately after the contract of sale?

3)Have you ever heard of a HMO setup for Lawyers? Where you pay a standard monthly fee of $35.00 or so and you can utilize their lawyer services anytime even for Real Estate. Would this be worth pursuing?

  1. If this HMO Lawyer type setup is not worth pursuing, can anyone recommend a good lawyer but dont cost too much? What is the average lawyer fee for setting up a LLC or Trust?

5)When should I apply to create/start the LLC or Trust? Once the contract for sale is made or way before it? How long does it take to set up? and how much?

#3

Re: HELP…HMO Type Lawyers, Trust or Single LLC? - Posted by Dave

Posted by Dave on March 01, 2002 at 21:30:19:

I highly reccomend pre-paid legal plans to anyone doing much investing at all. They are cheap, and very good. You can get a lot of consultaion and document review for free. I used to own an environmental engineering firm and after enrolling in a legal plan, I saved thousands of dollars on little stuff, normally consultation and contract review. Feel free to email me if you want more info!