Setting up an LLC for Multi family properties
Is it a good idea to hold my properties in an LLC? Should I set up a seperate one for each property that I purchase?
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@Wave Taylor - If you are doing real investing and using commercial financing then you will want to set up a business entity to hold your properties as commercial lenders will only lend to business entities. Setting up an LLC is the most common, although S-Corps and C-Corps are also possible. As far as setting up subsidiary entities for each property, this depends on what kind of liability protection you are looking for. If you you have property A, B and C, each in their own LLC all held by a holding LLC then you have double layer protection. That is more of a legal issue than it is a financing or business issue, a lawyer can help you with the best structuring strategy. The thing to remember though is that as your investment portfolio grows in naturally becomes a business unto itself so setting it up this way from the start will save you issues later on.