buying the membership interests of an llc that owns real estate

[Nicholas Thompson]

What are the pro's and con's of buying the membership interests of an llc that owns multifamily real estate as opposed to buying just the assets? 

[Bob Norton]

@Nicholas Thompson The biggest risk for buying an LLC is the unreported liabilities. So, you will want to do your due diligence, give yourself enough time for that in the contract, and get strong representations and warranties from the seller. Make sure you retain a seasoned attorney with experience in this area.

I've had clients buy the entities because certain permits or licenses come with the property, which they wanted.  I still gave them the same advice about unknown liabilities.