Cleveland RE : To LLC or not to LLC

[Nischal C.]

Folks,

Looking at going into my first property with my partner - and sort of stuck on whether to have an LLC. The intent is to cover as many units (in the future) under the same entity and be protected (umbrella insurance?) at the same time.

I've read that Ohio in general is landlord friendly - so is it worth putting up the cost of the LLC - what strategies are being followed by fellow Cleveland investors .

Thanks in advance 

[Aaron W.]

@Nischal C. That is great you are looking to purchase your first property! 

Even though an LLC is not necessary to invest in real estate, in a partnership, I will typically use an LLC. My partner and I have non-real estate assets we want to protect outside of the real estate investments.

Whether or not you use an LLC, make sure you set up separate bank and credit card accounts specifically for the real estate investments. Co-mingling personal and business can be disastrous should you find your investments under litigation.

Good luck!