Shuchi Agrawal, Serving Dallas / Ft. Worth (Kanam Realty Group/Kanam Commercial)

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Rainmaker
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Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

NO, agents should never advise on how to hold title (even if you think it's in the client's best interest) direct them to a lawyer. Financing property held under LLC title is tricky, but can be done.

Jan 04, 2016 12:07 PM
Rainmaker
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Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

By the same token, many lenders limit the number of financed properties you can hold under your own name. This is an indvidual decision for each investor and they need to seek the counsel of their tax and legal advisors.

Jan 04, 2016 09:24 PM
Rainmaker
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Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Not unless you are an attorney!!

Jan 04, 2016 08:05 PM
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Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

    You can talk in generalities, mention the website and the Office of the Florida Secretary of State, Division of Corporations (where you create an LLC)... but if you "advise", you are crossing the line into Unauthorized Practice of Law (UPL) here in Florida. 

Jan 04, 2016 12:55 PM
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Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I would not offer that sort of legal and financial advice but tell them to consult an attorney and their tax professional

Jan 04, 2016 12:13 PM
Rainmaker
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Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

they should talk to their attorney about whether to try to buy in an LLC

Jan 04, 2016 01:22 PM
Rainmaker
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Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

I'm with Pete X with X Group Real Estate Advocates, Huntington Beach, CA 714.459.2017 OCLister.com - it is not up to a real estate agent/broker to advise on legal/tax matters like this.

Jan 04, 2016 12:10 PM
Rainmaker
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Roy Kelley
Retired - Gaithersburg, MD

No. Use of LLCs is not the best solution for many investors. They should seek advice from their accountant and their lawyer.

 

Jan 04, 2016 11:50 PM
Rainmaker
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Raymond E. Camp
Ontario, NY

Not unless you are an attorney!

Jan 04, 2016 09:39 PM
Rainmaker
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Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I try not to give legal advice of how to hold properties or in what entity. I give the pros and cons and let the buyer speak to a lawyer to decide that, 

Jan 04, 2016 09:19 PM
Rainmaker
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Fannie won't let them purchase under an LLC. They close as an individual and then immediately file the LLC. If you purchase cash you can do anything you want including filing as an LLC or trust.

Jan 04, 2016 09:00 PM
Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I agree with others. I do not advice cleinst on legal stuff.

Jan 04, 2016 08:58 PM
Rainmaker
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Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

I don't think any investor wants my advice, and I doubt if my broker wants any agents advising anyone on something that can be considered legal and tax topics.

Jan 04, 2016 07:34 PM
Rainmaker
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Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Shuchi. I buy all of my properties in an LLC, as they are mostly to flip, just don't want the personal liability.

Jan 04, 2016 05:39 PM
Rainmaker
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TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

 Good morning. You are a real estate agent not an attorney. Have them talk to their attorney. you will get yourself in more trouble giving out legal advice.

Jan 04, 2016 05:08 PM
Rainer
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Fred Hafdelin
Weichert Realtors - Mountain Lakes, NJ

I never give advise outside of my area of expertise.

Jan 04, 2016 04:58 PM
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Shuchi Agrawal we are in Real Estate - and such advice should be from their financial consultant!

Jan 04, 2016 03:46 PM
Rainmaker
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David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

Shuchi,
I don’t advise them on legal and tax issues like that. Once the tax person and attorney tell them what to do, we find a way to finance it.

Jan 04, 2016 02:23 PM
Rainmaker
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FN LN
Toronto, ON

You should have the investors receive advice from their tax accountants / tax lawyers and legal advisors about such issues.  There are many factors to consider.  You should NOT provide any advice on these issues.

Jan 04, 2016 02:14 PM
Rainer
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Caroline Gerardo
Licensed in 20 states - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Shuchi Agrawal LLC vesting does not protect an investor much. Only a few lenders allow them and charge a higher rate for this vesting and require personal guarantees and right to take over management. LLC has a large annual cost, additional taxes to be filed with filing fees, not a DIY project- investor needs a savy tax accountant and attorney.  I'm not offering advise, saying it's expensive. 

Jan 04, 2016 12:33 PM
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

only if you are an attorney and/or a CPA.  I generally recommend they speak with one to figure out liability issues and tax strategy. I may know what I think they should do, but I am not allowed to give legal or tax advice by my real estate license.

Jan 04, 2016 12:26 PM
Rainmaker
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Joan Dickie
Keller Williams Premier Realty - La Crosse, WI
Keller Williams Premier Realty

I agree with the others on having proper channels of advice.  However, if someone asked me, and after I told them to consult an accountant or tax advisor, I might mention that other investors I have worked with bought it in their name, then transferred it to an LLC.  Not giving advice, just telling a story.  Not an accountant, nor do I play one on TV.

Jan 04, 2016 12:16 PM
Rainmaker
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Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Pete X with X Group Real Estate Advocates, Huntington Beach, CA 714.459.2017 OCLister.com answered the way I would and did it first.  

Jan 05, 2016 12:12 AM
Rainmaker
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Bruce Walter
Keller Williams Realty Lafayette/West Lafayette, Indiana - West Lafayette, IN

There could be tax implications under FIRPTA for the buyer by purchasing the property under an LLC instead of as an individual.  Always best to check with the professionals.

Jan 04, 2016 11:10 PM
Rainmaker
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Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Shuchi Agrawal No, send them to a real estate attorney.

Jan 04, 2016 10:47 PM
Rainmaker
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Amelia Robinette
NoVa House and Home - Frankly Realty - Falls Church, VA
Education, Innovation, Service

Absolutely would never give legal or tax advice. I have attorneys and accountants that I recommend.

I will share with clients what I do with my investments to give them an example of one way it's done.

 

Jan 04, 2016 10:10 PM
Rainmaker
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Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

It's really all about limiting your personal liability .

Jan 04, 2016 09:54 PM
Rainmaker
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Richard Weeks
Dallas, TX
REALTOR®, Broker

We recommend they speak to their financial advisor or attorney.  Most recommend an LLC for each property.

Jan 04, 2016 09:33 PM
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Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

I dont advise on this, they should consult their attny and lender for this.

Mar 14, 2019 08:08 PM
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Shuchi Agrawal
Kanam Realty Group/Kanam Commercial - Flower Mound, TX
Serving Dallas / Ft. Worth

Thank you all for your insights.  My feelings exactly.  We're in the professional of helping people buy and sell.  Legal and tax advice is best left to attorneys and tax advisors.

Jan 31, 2016 07:10 PM
Rainmaker
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Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

That would be my recommendation with a caveat that the client also consult his accountant and attorney. When I worked with a developer/investor, we formed a separate LLC for every property.

Jan 05, 2016 12:40 PM
Rainer
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Michael Thacker - Re/Max Real Estate Center - Louisville
Re/Max Real Estate Center - The Thacker Group - Louisville, KY
Your best friend who just happens to be a Realtor

I would never advise a client, thats what a RE attorney should be doing. 

Jan 05, 2016 05:52 AM
Rainer
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Jack Gerbehy
Egg Harbor Township, NJ

I would never give legal advice.... 

Jan 05, 2016 01:52 AM
Rainmaker
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Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

don't give advice on any legal or accounting issues..... 

Jan 05, 2016 01:26 AM
Rainmaker
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Shanna Hall
Real Estate Solutions - Kirkwood, MO
I love selling houses!!!St. Louis, MO 314-703-1311

I hold all of my properties in LLC's.  They can take possession in their name and then have the name changed in the tax records after the financing has been completed. 

Jan 05, 2016 01:00 AM
Rainmaker
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Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Yes, they bring their preapproval letter.   Those with hard money letter often wanted to bid 50% under going rate. That means they put nothing down.  I tell them to take a hike....

Jan 05, 2016 12:28 AM