What does a beginning investor need to know about LLCs?

Question

Hello All,

I am a beginning investor looking to purchase my first investment property in a few months. I am trying to research and learn the pros and cons of using an LLC for rental investment properties. Is this something that is needed? Should I have one for each property or in  each state my property is in?

Account Closed · Answer

NOTHING

Kenneth Garrett · Answer

@Kevin Charles

An LLC provides asset protection.  It separates you personally from the entity.  In the event of lawsuit your personal assets are protected.  You can never have enough insurance to cover a catatrosphic event on your property.  For more info check out Mark Kohler on you tube he is an attorney and cpa.  Great free info.

Good Luck.

Nick Rutkowski · Answer

@Kevin Charles

I was told one LLC for every 10 properties. Honesty it’s up to you. LLCs also can get business LOCs which is helpful to buy RE. LLCs also prevent Sue Happy Sam from taking your personal belongings and accounts. Just don’t spend your LLC money on gas or you’ll pierce  the corporate vail. Good luck!

Nick Flint · Answer

@Kevin Charles

There’s some good articles on LLC’s in real estate on here.

https://www.biggerpockets.com/renewsblog/using-LLCs-real-estate/

https://www.biggerpockets.com/forums/51/topics/495883-is-it-really-worth-setting-up-an-llc

https://www.biggerpockets.com/renewsblog/business-entity-llc-real-estate/