Hey folks, Matt Horwitz here from LLC University. I hope you're all doing well. Today, I want to discuss a major mistake that many real estate investors make when it comes to setting up their LLC. We've received numerous phone calls from individuals who have already purchased investment properties in their own name, but now want to set up an LLC to protect their assets. Unfortunately, just setting up an LLC won't magically protect their assets. It's important to understand that when you set up an LLC, it becomes a separate entity by state statute. This entity needs to own the property and conduct the business. Therefore, all purchase contracts, agreements of sale, deeds, and financing should be in the name of the LLC, not in your personal name. I recently had a phone call from a gentleman in California who owns three different properties, each financed by a different bank. He wanted to set up an LLC to protect his assets. However, I advised him not to proceed with setting up the LLC just yet. Instead, he needs to contact each of the banks to inquire about refinancing or transferring the title, and how it will impact his loans. Once individuals understand the need to transfer the title into the name of the LLC, they realize that it's often referred to as a "dollar deed," where you sell the property to your own LLC for a symbolic amount. The actual name of the deed may vary depending on your location, and there may be associated fees. However, it's important to note that if the properties have existing financing and mortgages, the process cannot be done hastily. There are various documents, mortgages, clauses, and agreements that were signed at settlement, and the finance company considers the transfer from the seller to a different...
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Colorado real estate commission s Form: What You Should Know
Colorado Division of Real Estate CFA's Brokerage & Development The Colorado Real Estate Division recognizes all forms of financial services including real estate. The CFA has published “Financial Services in the Real Estate Industry.” This publication, released July 2016, gives guidance to the real estate industry about accounting, banking, insurance, real estate sales, lending and financing, and financial advisory services. The publication gives information on the structure of the industry, the responsibilities that members of the industry have for their members, and where applicable, the consumer protection and investor protection measures that the industry must follow. Learn about the industry-wide standards for each of the eight “Core Rules of Real Estate Financial Services.” Real Estate Brokers When you apply for your broker license or become a broker you need to meet the licensing requirements set forth in the Real Estate Brokers (Article 3) License and Business Licensing Manual (PDF). When you conduct your own activities you must follow the same licensing requirements that are set forth in the Real Estate Brokers License (Article 3) Manual. These documents must be printed on letter-sized paper (3M), which is not computer-readable. Broker-Client Communication The “Broker-Client Communication” (BCC) requires a client to give the broker a copy of the current and accurate list of any and all property, or property and interest in property, for which he is the named agent, and includes a description of the property including address and building number which is accurate and complete. The CMV, the “Clerk of the Market and the Register of Wills” must be consulted on both the current and original list of property on file for the licensed real estate broker and must sign off on the information, or he will be issued a citation. The CMV's signature will be required on a second copy of the BCC, which may or may not be signed. Broker-Client Communication with an Agent The CMV may designate one of its staff members to review the BCC and make comments and suggestions to the CFA's clerk-of-the-market and/or register of wills in approving any and all transactions by the licensed business. The clerk-of-the-market and registers of wills will not sign the report unless they have discussed its contents with the CFA clerk-of-the-market or registers of wills.
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