Hey all, my father and I are looking into buying some rental property together in Columbia South Carolina. The question I have is if there is anything special I need to look out for as my father does own his own business.
By this I mean is there anything special we should do to protect the business from any real estate repercussions and vice versa? As well as any other advice you think I need to hear about this situation.
Set up a separate LLC and have your attorney verify that there is a clear vail of separation. I own a business and two property holding companies. My only mistake is that I've used one in the past to help the business when it has some issues that required a cash injection.
The best structure is to set up an LLC that will be the member and manager/operator of each property LLC.
Always put each property in a separate LLC. This keeps liabilities limited to the property LLC
I agree with @Greg Dickerson , also proper insurance. Then make sure your tenants and properties are taken care of and you will likely not have any issues.
Check into forming an LLC and potentially have an attorney draft an operating agreement.
You can probably get some great tips by consulting an attorney and tax pro regarding the implications of the entity. Many of those professionals provide complimentary initial consultations.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you