How to Structure a Portfolio !!

[Ozan Somunkiranoglu]

Hi everyone,

I’m in the process of purchasing my first rental property, with a clear plan to add multiple properties within the next year. As I map out this long-term strategy, I want to make sure I structure the portfolio correctly from the beginning rather than having to unwind things later.

My main question is around entity structure. Would it be more prudent to:

• a)Set up a holding company and place each property into its own individual LLC, or

• b)Group multiple properties under a single LLC for simplicity and efficiency?

Since these will all be investment properties, my initial thought is that holding them in LLCs makes sense from a liability and risk-management perspective. At the same time, I’m trying to balance that protection with practical considerations such as financing, ongoing costs, tax treatment, and administrative complexity as the portfolio grows.

I’d really appreciate hearing from those who have already gone down this path—what structure did you choose early on, what worked well, and what you would do differently if you were starting over today? Any insights, lessons learned, or resources would be extremely helpful.

Thank you in advance for sharing your experience.

[Chris Seveney]

Quote from @Ozan Somunkiranoglu:

Hi everyone,

I’m in the process of purchasing my first rental property, with a clear plan to add multiple properties within the next year. As I map out this long-term strategy, I want to make sure I structure the portfolio correctly from the beginning rather than having to unwind things later.

My main question is around entity structure. Would it be more prudent to:

• a)Set up a holding company and place each property into its own individual LLC, or

• b)Group multiple properties under a single LLC for simplicity and efficiency?

Since these will all be investment properties, my initial thought is that holding them in LLCs makes sense from a liability and risk-management perspective. At the same time, I’m trying to balance that protection with practical considerations such as financing, ongoing costs, tax treatment, and administrative complexity as the portfolio grows.

I’d really appreciate hearing from those who have already gone down this path—what structure did you choose early on, what worked well, and what you would do differently if you were starting over today? Any insights, lessons learned, or resources would be extremely helpful.

Thank you in advance for sharing your experience.

you will never be able to scale holding each asset in its own LLC, you will however be able to rip every shred of hair off your head from having to have multiple bank accounts, quickbooks subscriptions, insurance company quotes and management contracts.

Keep it simple