I know it is safer to incorporate then to own property in your name, but how do you do it? Do you start an LLC for all your property, or do you start one for each piece of property? Will this cause problems with getting loans?
I don't know about SAFE - but the easiest and BEST way is through an LLC which is easy to establish, insure and finance.
First off I am not a lawyer, so seek competent legal advice.
In my opinion the best way to hold property is in an LLC. I personally hold a couple million dollars worth of property in each LLC, but make sure I spread out the risk among multiple LLC's.
Originally posted by "marks":
I know it is safer to incorporate then to own property in your name, but how do you do it? Do you start an LLC for all your property, or do you start one for each piece of property?
Just starting out, one LLC is probably fine. But exactly which type of entity you use, LLC, C corp S corp etc., can be a complex issue. What type of investing are you going to do? Do you have significant assests now? There are many issues to consider.
It's important to understand that there are both tax isssues and asset protection issues. NOLO Press puts out legal self help books. They have some very good books on LLCs. You can order them online or et them at your local library.
Will this cause problems with getting loans
It can raise the rate and many lenders will not loan to LLCs. You usually need a commercial loan. Many lenders you might typically go to are geared to get mortgages for homeowners. They don't understand inveseting issues and will promise you the world but won't be able to fund the deal when the time comes.
Ned Carey, Crab Properties LLC | http://baltimorerealestateinvestingblog.com/
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