Updated about 11 years ago on . Most recent reply
Series LLC in Florida
Good Afternoon,
After moving along at a snails pace, I am finally going to start buying some properties. My initial plan is flipping, with rentals also part of the equation at some point. My question is setting up an LLC. I have been advised by several people that setting up an LLC would be a good idea as a "safety net". I have also heard about a series LLC since I want to be able to purchase several properties and keep them under the same umbrella. Has anyone done this or have any thoughts? Thank you
Most Popular Reply
#2 Insurance Contributor
- Insurance Agent
- Nationwide
From the insurance perspective, a couple things to consider. Most insurance companies do not like insuring properties that are being flipped, but prefer the buy and hold rentals. Doing both under 1 entity will subject your buy and hold properties to higher premiums.
I have a client who has his lead llc purchase all of the properties. He rehabs them and looks to flip. If they do not sell after a certain period of time, he transfers them to one of his other "buy and hold" llc's and retitles in that particular llc. This keeps both business operations separate from one another and gives me the ability to acquire the best possible insurance program for each.