Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
9y
@Tiffany Spann IMO, ABSOLUTELY unless you don't care about losing your buy and hold assets if you ever mess up and get sued under your wholesale business. Always separate assets from liabilities. Some people even recommend having each buy & hold property owned by a separate LLC, or implementing a series LLC. CYA to CYA... (Consult Your Attorney to Cover Your A..Butt!!)
Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
9y
@Tiffany Spann Ask your attorney. Mine set up 3 - one for transactional investments, one for long-term buy-and-holds, and another for the management of everything.
Dunedin, FL · Member since 2017 · 33 posts · 5 votes
9y
the episode of the podcast that had an attorney as the guest said (paraphrasing) from a tax standpoint it's beneficial to separate buy&holds from flips/wholesale deals because if they're all in one LLC the irs will elect the transactions that determine how you're taxed. The flips/wholesale deals obviously have a higher earnings potential in a year so guess which transactions they'll scrutinize? If they're in their own LLC then they don't have the option to differentiate