Is an LLC or LP better for real estate investing?

4 Replies

I am a young real estate investor who will start investing in the next couple of years. I know you all aren't attorneys but what is better LLC or a LP? I am stressing about all of this and wondering if I have to learn about a LP and LLC or do I just let my future attorney worry about this?also, with a LP do you have to be in a partnership with someone else? How does that work? Thanks a lot for the future feedback! Anthony
Just let your future attorney worry. Just try to make something happen. Why wait a few years to begin? I heard tomorrow is a good day start.
Originally posted by @Anthony Colonnetta :
I am a young real estate investor who will start investing in the next couple of years. I know you all aren't attorneys but what is better LLC or a LP? I am stressing about all of this and wondering if I have to learn about a LP and LLC or do I just let my future attorney worry about this?also, with a LP do you have to be in a partnership with someone else? How does that work? Thanks a lot for the future feedback! Anthony

Assets should be purchased under SPV's, typical entity structure is an LLC. If you have investors, the entity controlling that SPV should be a partnership. GP/LP structure is ideal. Refer to counsel.

Anthony Colonnetta That's the only real excuse. Good for you. Wish the best for you. Most likely you won't be able to purchase a property in LLC name if you are using traditional financing products. The best thing you can do now is what it sounds like you already are. Learning about sweat equity.