Posted by JHyre in Ohio on February 21, 2002 at 12:44:00:
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.
BEFORE!
Search the main newsgroup for prepaid legal services…people have commented on this topic in the past
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.
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.
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?
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?
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!