Buy the LLC or buy the apartment
Hi,
Wondering if someone has some good insight to this. I am thinking of purchasing a large apartment complex that has been owned and operated by the same family for over 30 years. The properties have no mortgages.
Initially I was going to use my company to buy the buildings but now I am thinking if there is an advantage to buying the shares of their company instead. With over 30+ years I am sure the company will have good credit history. Perhaps I can use that to my advantage on my next acquistion. Of course, I will need to make sure that they are current on taxes and there are no liens or judgements.
Any comments will be appreciated.
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#1 Foreclosures Contributor
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#1 Foreclosures Contributor
- Real Estate Professional
- West Palm Beach, FL
Other than the unknown risks you eluded to, one problem jumps out at me. If you buy the entity that owns the property....the property has already been depreciated to $00.00, or close to it, which will be Your basis, which eliminates any depreciation on the "purchase price" and 100% capital gains tax on any future sales price. Doesn't seem attractive, unless I'm way off. Just noticed the BC, this would be for US.