What are the advantages and disadvantages to buying residential property in personal name and transferring to LLC?
I think (not positive) Brandon Turner mention in one of the podcasts that this is what he does and I am curious if this is common.
I am currently placing offers for my first property, nothing has landed yet, but I want to be prepared.
Hi @Garrett Masiulis - I'm currently I holding my two single family homes in my personal name. I think holding in your personal name with an umbrella policy may be similar risk wise to holding the property(ies) in an LLC but with perhaps lower overall costs after factoring minimum taxes and fees associated with an LLC.
Perhaps an atty could tell you what the process would be for transferring properties into an LLC, but I don't imagine it would be difficult.
If you don't already have an LLC set up, then I imagine the simplicity and lower up front costs of buying in your personal name would be better than going through the trouble of setting up an LLC in advance. As I grow my investments I plan to eventually look into transferring to an LLC, but just don't yet see the value personally. Your situation and risk tolerance may differ.
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