Assignment of Interest for Real Estate Investors

If you own an LLC or Series LLC, chances are that you may need to handle an Assignment of Interest.

There are a wide variety of situations where assigning all or part of the interest of a company can benefit the business as a whole. How this process looks is governed by state law as well as the Articles of Organization for your particular LLC. Some common reasons you may need an Assignment of Interest include the below scenarios.

Lending Negotiations

Sometimes members of an LLC will use their shares of the company as collateral for a loan. This is a fairly common practice in the real estate industry. Members may assign all or merely a portion of their interest in this situation.

Debt Resolution

Forming companies and purchasing properties is expensive. Occasionally, members of an LLC may assign a portion of their interest in a company until their profits have satisfied a personal debt.

Personal Reasons

There is a wide range of reasons you may choose to assign your interest in your company to a trusted partner or family member. Marriage, death, or other major life events can raise this issue.

Royal Legal Solutions Can Assist You With Many Assignment Of Interest Needs

If your Assignment of Interest is part of a greater issue with forming or managing your Traditional LLC or Series LLC, Royal Legal Solutions can assist you. We have years of experience forming these companies and managing the necessary paperwork. We also offer free educational resources on the best practices for corporate management, taxes, and asset protection. Our belief that informed clients are the best kind of clients drives us to offer regularly updated, accurate free materials to help you get the most out of your professional LLC. Forming your LLC with Royal Legal Solutions can simplify the process of assigning interest, as we will be the ones to draft your Articles of Organization. If you know this will be a concern for you, be certain that you advise the professional you work with of your situation when forming your LLC.

What Exactly Is An Assignment Of Interest?

An Assignment of Interest is the legal means for transferring the ownership of an LLC or other Company is from one entity to another. Typically, there are additional complications regarding under what conditions and what approvals are necessary in order to enforce the assignment. These conditions and approvals are located in the Subscription or Operating Agreement of the investment.

Why You Should Choose Royal Legal Solutions For Your Assignment Of Interest


One mistake that some investors fall for is attempting to draft their own contracts or pulling them from free online services.

Perhaps you have seen that you can get certain templates for legal documents, including Assignments of Interest, from Legalzoom or another website. Any attorney will caution you against using these for your business. Ultimately, these “free” documents can cost you a great deal of money in the end.

Anyone can write something and give it away on the internet. So that document may have been penned by an attorney who makes $1500 an hour, or it may have been a school exercise for a student who does not speak English as a first language.

Frankly, it is impossible to know the source of such documents and they should be regarded with suspicion. Only an attorney with experience in the real estate field can tell you whether such a document would hold up under legal scrutiny. In fact, we have been called after clients of ours have made this mistake. Trying to correct errors in legal documents after the fact is infinitely more difficult, time-consuming, and costly to the client than hiring a professional to handle the document in the first place.

It is well worth the investment to ensure that your Assignment of Interest and other legal documents are properly drafted by professionals.

Our Experienced Legal Professionals Advocate For You

When you get your Assignment of Interest from Royal Legal Solutions, you do not have to live with these anxieties. You can rest assured that your document does exactly what it needs to do, and will protect your best interests.

We know you take your real estate business seriously, that you have invested a great deal of your hard-earned money into growing your investments. Royal Legal Solutions specializes in customizing the necessary legal documents and seamlessly obtaining the approvals to transfer the ownership interests for your LLC. If any of these steps are done incorrectly, the transfer will be invalid.

The good news is that we are here so that you do not have to take this unnecessary risk. Simply tell us what you need. Let us worry about how to get it done, while you do what you do best: run your real estate business.

Why We Assist Real Estate LLC Owners With Assignment Of Interest

Whatever your reasons are for needing an Assignment of Interest, Royal Legal Solutions can assist you. We can also help with other operational or legal aspects of your corporate structure if you have additional questions or needs regarding your Traditional LLC or Series LLC.

Having an actual real estate attorney draft your LLC’s documents can make the difference between whether they will hold up in court if you ever come under attack. Smart investors don’t have to take this risk. With Royal Legal Solutions by your side, you can feel secure in the fact that your business documents are legally compliant and accomplish exactly what you need them to.

Why Use Royal Legal Solutions For A Real Estate Investment Asset Protection?

We have experience in setting up the proper asset protection and making it easy for an investor to use. Our system simplifies management structure as much as possible, and we also use common sense to ensure your needs are met. For example, just one tip we give our clients is that you don’t need multiple bank accounts as long as you have accurate accounting records. For taxation, they should stay exactly how they are now while being reported on a Schedule E of your personal return (if you’re an individual/married partners) or a partnership return (if unmarried partners).