Getting into the real estate business can be a very lucrative, and accessible, investment decision. You can flip houses, set up an apartment for long-term rental, or even rent out a spare room if you are in Manhattan for additional income.
As with any investment, it is a good idea to protect yourself from liability. In real estate, one way to do so is to form a limited liability company or LLC. An LLC can provide protection for your personal assets in case of lawsuits or debts.
When you register your real estate business, you will need to assign an individual or company as your registered agent. This agent will be the one to receive and handle the necessary paperwork and correspondence especially the Service of Process from the state. The Secretary of State will be the default registered agent if your LLC is in New York. However, you are still required to provide an address to which the Secretary of State may mail a copy of documents. Thus, it is still advisable to find a third-party registered agent to help you with your real estate business.
A registered agent is required to have a physical address in the state. If you are in the same state as your real estate business, and have a full-time dedicated office, this may work. However, real estate investments may not be in the same state you live in. For example, if you live in New York but happen to have an apartment in Portland where you will be required to have a registered agent to be physically present there. You will need to know how to find the best registered agent in Oregon and learn about what are the best registered agent services in that particular state.
An additional requirement for a registered agent is to be available during normal business hours to accept important documents upon delivery. However, if real estate is only one of the ways you generate income, such as if you are employed elsewhere, or if your real estate business is actually in another state such as Wyoming, this can be difficult. If you find a registered agent whose sole business is to be a registered agent, you can be assured that someone is always there to accept legal documents on your behalf.
Having a registered agent service different from yourself will ensure that your personal address does not become part of public record which is a requirement for registered agents. This is especially important if you are running your real estate business from your home. Aside from privacy and security, you will also be spared from unsolicited mail sent to the business. Not to mention the fact that important business-related mail might get misplaced or lost if you do receive a lot of mail at your home address at the same time.
Ability to move
A lot of people are working remotely and thus are relocating especially from New York. An advantage of having a third-party entity as a registered agent is that you can move addresses without having to worry about changing the registered agent’s address which requires additional effort and fees. Even if you are not changing residence, having a registered agent service ensures you have the ability to travel even for prolonged periods of time and be in different places without having to worry.
One of the good things about the real estate business is the potential to own multiple assets. Nowadays, this is made even easier through the use of modern video technology. One does not have to constantly be present to oversee a real estate investment. You can be in New York while overseeing the construction of your Ohio fixer-upper or coordinating with a Michigan-based property manager. Since you will need to register your company in the states you operate, having a registered agent service in those states would make everything easier than being limited to only the state you are physically residing in.