Skip to content
Tax, SDIRAs & Cost Segregation

User Stats

9
Posts
3
Votes
David Corey
  • Worcester, MA
3
Votes |
9
Posts

Holding property in a realty trust vs. an LLC?

David Corey
  • Worcester, MA
Posted Oct 22 2014, 18:01

Hi All,

My partner and I are looking to get started in REI, primarily in smaller 3-4 unit multi families. We currently own one 3 unit property, and the title is held under our individual names. As we're preparing to expand the portfolio, we've been trying to figure out what is the best way to protect ourselves from a liability perspective, while still taking advantage of as many lending options as possible. We had decided that holding each future property as an LLC would provide us the protection we were looking for, but that also rules out any Fannie/Freddie programs and probably puts us in the commercial loan category or a specialty program.

The question we have is what do folks think is the best way to structure your property holdings in order to best protect yourselves from a liability perspective while not excluding some of the more appealing lending options? Does anybody hold their property in a realty trust where the beneficiary of that trust is an LLC? From the limited information we have, it sounds like that could allow the trust to purchase the property with a Fannie/Freddie program, while still allowing the beneficiary (LLC) to protect the owners/members of the trust.

Curious to hear your thoughts.  Thanks so much for your help.

Dave

Loading replies...