Series LLC & BRRRR Questions from Rookie Investor (Illinois/STL)
Hi All,
Loaded subject line, but here goes...I'm a licensed Illinois Realtor (about 2 years experience) in the Metro East just outside St. Louis, and I'm just about ready (after much paralysis by analysis) to begin investing. My plan is to mainly buy and hold, adding a few (ideally 2-4) properties to the portfolio per year, at least for the first several years. I plan to focus on single family and perhaps get involved with multifamilies down the road. I have some savings, but the majority of my initial funding will come from immediate family. I plan to buy the first few properties with cash, and utilize the BRRRR method to build the business.
I've been scouring BiggerPockets and the Internet at large for information on Series LLCs, and overall the outlook is murky. Much of the discussion I have come across appears to be a few years old, so I would love to hear anyone's current assessment of the Series LLC - as well as whether you think it may be a fit for me. I have spoken with some local attorneys/investors who find the lack of case law to be problematic, although I wonder if the reason they don't support the Series LLC is at least partially because they have experienced adequate success using multiple traditional LLCs and thus don't find it necessary to change or fix what isn't broken.
For simplicity's sake, I would prefer a single member Series LLC (the family members providing funding are okay with this) - however, I worry about how single member LLCs are treated when it comes to asset protection. I plan to do most of my investing in Illinois, although I will probably get licensed in Missouri in a couple years and begin to invest there also.
Thanks in advance for any feedback - whether it be in regard to LLCs, other entities, insurance, taxes, BRRRR, financing, or anything else. I've been a casual observer of BiggerPockets for a while and am excited to get more involved!