All Forum Posts by: Jeff D.

Hi everyone and thanks for taking your time to help me with my question.

I am familiar with commercial properties and the advantages of an LLC formation, however I have recently thought about entering another market and owning some residential multi-family housing. From everything I've read with an LLC structure financing is impossible from Residential lenders, which makes perfect sense. So i've decided that I would like to pursue these properties using my own name and adequate umbrella insurance coverage.

My question is, for those of you who own Residential RE in your name, did you/ do you set up an LLC for Property management purposes if you're going to be managing the properties yourself? I'm thinking that I'll purchase the property in my name to take advantage of the better financing from lenders, but I'd like to set up an LLC to manage the properties so as to set up a business checking account and separate finances from my personal accounts. I'd love to hear what you all do or think of my idea.

Thanks.

-J

Thanks for the input everyone! I appreciate it. Starting to get a better understanding of the concept.

Thanks for the input everyone! I appreciate it. Starting to get a better understanding of the concept.

Hi there and thanks for taking the time to help answer my question.

While researching properties in my local market I've come to see that many properties are owned by LLC's solely dedicated to that individual property. For example 123 Main Street is owned by 123 Main Street LLC.

What I've begun to wonder is, when acquiring properties is their a parent LLC company that purchases the property and then transfers it to an LLC the investors set up named 123 Main Street LLC? Or during the closing process do the investors simultaneously file for a new LLC and then close on the property under this new LLC? And how would these investors obtain the financing for this new property if they are a newly formed LLC without a track record or history?

Thanks again.

Hi there and thanks for taking the time to help answer my question.

While researching properties in my local market I've come to see that many properties are owned by LLC's solely dedicated to that individual property. For example 123 Main Street is owned by 123 Main Street LLC.

What I've begun to wonder is, when acquiring properties is their a parent LLC company that purchases the property and then transfers it to an LLC the investors set up named 123 Main Street LLC? Or during the closing process do the investors simultaneously file for a new LLC and then close on the property under this new LLC? And how would these investors obtain the financing for this new property if they are a newly formed LLC without a track record or history?

Thanks again.