Multifamily syndication- questions about being a passive investor

27 Replies

"I invest individually rather than through an LLC. An LLC would add protection that I don't feel I need."

Disagree - If the REIT goes sideways and there isn't any limit on the recourse, I'd do the LLC since it'll keep it to your contribution. LLCs are cheap/easy to set up and its a pass-thru for income.

Hello this is Not Legal or Tax advise so I would speak to both before making a decision. I will Zig while other have Zagged here. I would say the LLC is better as it is not held in your personal name. Also for estate planning again speak with an attorney you could sign an amendment ahead of time or create a para upon demise of XYZ(wishing you health & a very long period before that would happen) that the LLC membership would transfer to ______ blank person. Also, the LLC can give you charging lien order protection. 
I would speak with your CPA also of how you can get classified in the IRS eyes as a Real Estate Professional.
Originally posted by @Debbie Hannappel :

When looking at being a individual passive investor in a Multifamily syndication, is it best to become an LLC yourself or stay as a individual investor ?

Does anyone know if as an individual passive investor in Multifamily syndications,  your not married but have a significate other, let say you pass away how does that person become a beneficiary?

Does anyone know a good CPA in the Phoenix/Scottsdale, AZ area that handles these type of investments K1, if the investment is from out of state?