When we first put a bid on this 15-unit apartment building in Dallas, we thought it would be easy. We set a closing date for only 2 months away. Now we have learned our lesson. Our most recent closing day was supposed to be last Friday, the 9th, but now it has been moved out another three weeks to the 30th. I have been going crazy for the last two weeks trying to make sure that everything was getting done on both sides. So I am thankful to have more time and more sanity.
There is no single party at fault that has been causing these delays. There is simply just a lot of work to do and in the end it is benefiting us because if we did close early we would have been missing out on a lot of information that could have cost us in the future.
Just this week I learned that an out of state LLC needs permission to operate in Texas. I have been led to believe that this is not true for all states, but I imagine that it is. There is a simple form to fill out and a $750 fee to send in and that takes care of it. But we would have been in a lot of trouble if we closed without it. Especially if we were later sued by a tenant and then found out that because we were not properly set up as an LLC in Texas and we no longer have the protection of the LLC. The moral of this story is to make sure that you have a good lawyer.
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I've heard advice from folks to setup an LLC in the state where you are investing. That seems to make sense as it would avoid that $750 fee.
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