Jersey City, NJ · Member since 2016 · 35 posts · 17 votes
How would it work to buy out an LLC to take on a property? Is this similar, in fact, to a seller financing or paying all cash? I get that I would be buying out the shares for the individual who holds all the shares within the established LLC, and it seems there will be no closing costs. I'd love to hear anyone's thoughts on benefits and drawbacks to taking on property this way.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
Of course you'd be inheriting any unknown liabilities of the LLC, and you'd be assuming the llc's basis in the property and depending on the LLC original purchase price and depreciation taken, a much lower basis than your actual "purchase price", increasing your taxes when you sell.