By law, an LLC can be created for any legitimate purpose, and the activity of the company can be defined as broadly or narrowly as members want or need. However, for most real estate companies, the objective is generally narrowly defined, since members generally constitute the company for specific purposes and ownership of a particular property. The limited liability company or “LLC” has become a popular vehicle for real estate investment and development. The main advantages of creating an LLC as opposed to another form of business entity are the company`s objectives. The company operates, directly or indirectly, through one or more companies (a) that buy, own, finance, finance, refinance, operate, sell, maintain, hold, hold investments, trade, sell and dispose; (b) the acquisition, ownership, participation in and sale of interests in companies that own the project directly or indirectly; and (c) other activities related to or related to the above. Over the past two weeks, Edwards Law has focused on limited liability companies – why you want them, how you train them, how to make your LLC bulletproof; and how you can protect them if a member of your LLC has declared bankruptcy. The focus this week is on the real estate company, and some of the provisions you should include in the corporate agreements for LLCs rental properties. Thanks for all your work and knowledge you have shared here for us. I really needed a detailed and simple explanation on this subject. I am part of a multi-member LLC and we needed this document to add our application. And wow, you even had the PDF at your disposal!! You made it easy for me.
Thank you! It saved me hours of work. I`ll be sure to follow your other social networks. In addition, limiting the allocation clause to the incorporation and maintenance of the real estate business as a “single unit” or “SPE” could protect and use the LLC in the following circumstances: Communications – All communications to members must be sent to the address printed in the operating contract. All notifications are recommended by certified email. Often, real estate investors choose to do business with a partner for a variety of reasons. Perhaps one partner is responsible for financing, while the other has experience in real estate management. No matter how roles are defined, if you decide to become an LLC business company, you should establish an LLC real estate enterprise agreement to protect you and your partner, while creating legally enforceable rights and responsibilities. There are many reasons why you want to establish a business agreement: some of the most important decisions that require the agreement of members of a joint real estate company are: (i) the sale or exchange of all or part of the company`s assets (including the project or part of it); (ii) the acquisition, by purchase, exchange, leasing or by any other means of real estate or personal property by the company (except the acquisition of the project); (iii) the conclusion or modification of a lease agreement for the project (except in the context of normal transactions); (iv) the borrowing of money by the company or the granting by the company of rights, receivables, charges or security interest by the company on an asset of the company, as collateral of the company`s debts and obligations or by any other means, or by modification, extension, extension or down payment of a loan, in whole or in part; and (v) the conclusion of equipment or construction services contracts, including property management and leasing contracts.