I'm an aspiring rental property investor in the Minneapolis/St. Paul metro area. I'm targeting properties in the $100K - $200K price range, with the intention of using traditional mortgages for financing.
From the outset, I do not plan to set up an LLC; first, because I don't think most banks will lend to an LLC, and secondly because I don't think such relatively small investments will arouse the attention of ambulance-chaser lawyers. I should be covered through insurance.
So, finally, my question is: how do you limit your exposure to legal liabilities as you your real estate net worth grows, assuming traditional mortgages remain an essential part of your strategy (i.e., an LLC won't work)?
Also, would love to connect with any BP folks in the area!
Rental Property Investor · North Little Rock, AR · Member since 2014 · 148 posts · 43 votes
7y
Great answer @Joe Villeneuve. @Michael Miller, I think that protecting your assets in a LLC also has tax benefits to you as well that you may not receive otherwise. I could be wrong, but of course, consulting your accountant/tax strategist may shed some additional light on the subject.
Rental Property Investor · North Little Rock, AR · Member since 2014 · 148 posts · 43 votes
7y
Great answer @Joe Villeneuve. @Michael Miller, I think that protecting your assets in a LLC also has tax benefits to you as well that you may not receive otherwise. I could be wrong, but of course, consulting your accountant/tax strategist may shed some additional light on the subject.