FAQS

Frequently asked questions

Q: I am new to real estate. What steps should I take to get started?


A: First steps would be to work on your credit (if needed) and get pre-approved by a lender. If you decide not to use a hard money lender (they basically lend similar to cash), try to find a lender who cares more about your credit than your income.You should then consult with a lawyer before you enter into contract. Disclaimer: Please note that these answers are for informational purposes only and should NOT be considered legal advice. Neither Franco Law Firm P.C. nor Sabine K. Franco are your legal counsel unless we formally enter into an attorney/client relationship by signing a formal engagement letter/service agreement. This also means that any and all information shared is NOT covered under attorney-client privilege. However, you should always have your specific situation evaluated by an attorney.




Q: Who are some notable lenders? How do I decide one which one to go with?


A: There are so many different lenders out there, it really all depends on what kind of loan you are looking for. One may be better than the other based on your needs and the type of property you are looking to purchase.




Q: My spouse and I currently rent out a home, and are looking to assume more properties in the near future. However, I thik it would be in our best interest to proceed with acquiring an LLC. What are your fees for business formations, and what information do I need to provide in order to get the process started?


A: Please email business@franco-lawfirm.com or use our “Contact Us” form so that we may further assist you.




Q: I want to start wholesaling properties. What contracts should I use? Purchase contracts? Assignment addendums? Is there a promulgated contract already used by TREC or TAR that I can download? I want to make sure I do it right and not lose my license.


A: In NY and NJ, we only deal with wholesales that either sell the entity or use bridge financing, and we use our own contract. Otherwise we do not represent wholesalers. Disclaimer: Please note that these answers are for informational purposes only and should NOT be considered legal advice. Neither Franco Law Firm P.C. nor Sabine Franco are your legal counsel unless we formally enter into an attorney/client relationship by signing a formal engagement letter/service agreement. This also means that any and all information shared is NOT covered under attorney-client privilege. However, you should always have your specific situation evaluated by an attorney.




Q: I am looking to go into business with a sibling. Can we separate LLC's and do business together, or should we just form a LLC together? Also if we use our last name as the LLC, are we still protected from personal assets?


A: a) It depends on your goals. However you can each form an LLC and do business together or each be a partner in one LLC. b) The LLC name is not usually material (doesn’t make a difference) for real estate purposes unless you are providing a service to the biblical. c) When it comes to naming LLCs for real estate properties, an easy way to name them is to use the property address. For example: 123 bird street or Caper homes 123. Disclaimer: Please note that these answers are for informational purposes only and should NOT be considered legal advice. Neither Franco Law Firm P.C. nor Sabine Franco are your legal counsel unless we formally enter into an attorney/client relationship by signing a formal engagement letter/service agreement. This also means that any and all information shared is NOT covered under attorney-client privilege. However, you should always have your specific situation evaluated by an attorney.




Q: I attended the Cesar and DJ Envy Real Estate Seminar in LA. I want to know the pros/cons of filing a Deleware LLC.  I've heard that I should file fore the LLC there. Is that strictly for cost purposes, because I still have to file California taxes, correct?


A: The pros of filing in Delaware, Nevada, or Wyoming will not necessarily benefit a new, small, or midsize investor. Filing in those states generally benefits large corporations. If you are not doing business in that state directly, you will have to register as a foreign entity in the state which you are doing business. This doubles the costs, and potentially taxes. Disclaimer: Please note that these answers are for informational purposes only and should NOT be considered legal advice. Neither Franco Law Firm P.C. nor Sabine Franco are your legal counsel unless we formally enter into an attorney/client relationship by signing a formal engagement letter/service agreement. This also means that any and all information shared is NOT covered under attorney-client privilege. However, you should always have your specific situation evaluated by an attorney.




Q: I would like to have a parent company over my LLC, should it be an S-Corp or a C-Corp?


A: a) It depends on the nature of your business. It’s not a one size fits all. b) If you are ready to proceed with forming a business entity, please email business@franco-lawfirm.com or use the “Contact Us” form so that we may further assist you. Disclaimer: Please note that these answers are for informational purposes only and should NOT be considered legal advice. Neither Franco Law Firm P.C. nor Sabine Franco are your legal counsel unless we formally enter into an attorney/client relationship by signing a formal engagement letter/service agreement. This also means that any and all information shared is NOT covered under attorney-client privilege. However, you should always have your specific situation evaluated by an attorney.




Q: Which type of business entity should I form for the process of fixing and flipping home?


A: Generally speaking, an S-Corp would be be best. However, you should always have your specific situation evaluated by an attorney and speak to an account/CPA. Disclaimer: Please note that these answers are for informational purposes only and should NOT be considered legal advice. Neither Franco Law Firm P.C. nor Sabine Franco are your legal counsel unless we formally enter into an attorney/client relationship by signing a formal engagement letter/service agreement. This also means that any and all information shared is NOT covered under attorney-client privilege. However, you should always have your specific situation evaluated by an attorney.




Q: Is there a franchise tax fee every month, and if so, is there an option to avoid this?


A: Franchise tax is annual. Please consult with an accountant or CPA for further tax questions. Disclaimer: Please note that these answers are for informational purposes only and should NOT be considered legal advice. Neither Franco Law Firm P.C. nor Sabine Franco are your legal counsel unless we formally enter into an attorney/client relationship by signing a formal engagement letter/service agreement. This also means that any and all information shared is NOT covered under attorney-client privilege. However, you should always have your specific situation evaluated by an attorney.




Q: I am starting a real estate investment company, what type of business entity should I consider forming for this venture?


A: Please email inquiries@franco-lawfirm.com, or fill out our “Contact Us” form so that we may better assist you.