New to Real Estate · OR · Member since 2021 · 66 posts · 23 votes
Hi all,
We are working to secure out first hospitality property. Our thought is to put the real estate and the business in separate companies then draft a lease between them. This would separate liability and differentiate the active vs passive income. Real estate under our current active business. New company under an entity in that state. We are trying our best to create the foundation to expand our portfolio & brand. I haven't been successful in finding resources as to the best structure to add property's and potentially franchisees in the future.
Questions:
1) What is the best structure between business and property (combo vs lease)? And for acquiring property? And for franchising?
Helen, GA · Member since 2015 · 96 posts · 68 votes
4y
Cody,
I own a hotel and STRs.
It would be best to speak with a lawyer about this.
I see what your trying to do in loosen your liability with running the hotel. We own our hotel in an LLC. Regardless, if someone wants to sue you, they will sue you.
If this is your first venture in hospitality, I'd just put it in an LLC and learn the business....Because hospitality is VERY different from regular, long-term tenants, and will give you plenty of surprises.