All Forum Posts by: Dhiren Ahir

@Dhiren Ahir  

Several considerations.

#1 you will want to check with your lender to see if they allow this. I think that will be your first challenge. I often see people go pay an attorney to create an LLC and move the properties only for the lender to request a month later for you to move them back under your personal name. This of course depends on the lender.

#2 Very few people set up and operate their LLCs properly to provide asset protection.  While there are probably some people that do and can accomplish this, it is tough.  

#3 I think it will be very tough for you to gain REPS status. Very very tough to do, especially if you are working a full time job. You accountant can advise you, but not easy. I don't think the LLC matters in this regard. How much time are you spending managing 7 rentals? Do you use PM or managing everything yourself. I like @Stuart Udis advice and one of my attorneys says the same thing.  For most people LLC will not provide liability protection.  Being a good or great landlord will help you.  If stuff is broken at your homes, fix it.  If there are hazards, fix/remove them.  Be good to your tenants.  Have great insurance, not the cheapest.  Have $5million umbrella policy.

#4 I don't even think in most cases the LLC provides any anonymity. It can, but normally in 2-3 minutes I can figure out who owns most LLCs and all their contact info. Attorneys are probably even faster. From what I see for most people the LLC also adds virtually no tax savings, but costs more money to have your accountant prepare taxes for the LLC. The one place I do see some potential benefits if if you want to employ your wife or kids and set them up with some retirement plan contributions. I doubt most people do that, but some potential interesting options there to get wealthy slowly.

Best wishes for your continued success and prosperity.  I enjoyed meeting you a few years ago.