All Forum Posts by: Forrest Hayashi
Forrest Hayashi has started 10 posts and replied 43 times.
Post: Using LLC for Rental License while Deed is under personal name
- Investor
- Posts 45
- Votes 11
Originally posted by @Rick Novotny:
Same disclosure as above - I am not a lawyer.
I ran into this same situation when I started. I bought 3 duplexes in my personal name but ran everything through my LLC. It was difficult to get lenders to lend to an LLC with no income, so I definitely understand. I did everything as if the LLC owned it (even taxes) and then eventually moved the deeds over to my LLC through a real estate attorney. I'm not sure if this is the right or wrong way to do it, but this is what worked for me so I thought I would share.
Congrats on the 3 duplexes! and yes i think a LLC would be my endgoal eventually but the it's harder to move over in Philly since there are more bureaucracies involved. I might just start using my LLC for future investments instead.
Post: Using LLC for Rental License while Deed is under personal name
- Investor
- Posts 45
- Votes 11
Originally posted by @Kevin M.:
@Chris K. has talked about this in a few other threads.
If the property is deeded in your personal name, the rental license held in an LLC will make no difference to your personal exposure to liability. If someone trips on your sidewalk any lawyer taking the case will immediately search public records and bring the deeded owner into the case. Probably your LLC 'managing' the rental as well. So you'll still personally be a named party in the case.
Creating an LLC to manage the property is probably more trouble than it's worth. You can still get anonymity with a virtual mailbox, Google Voice number, and LL-specific email address used for RE activities only. Do this along with a big fat GL insurance policy and umbrella on top of everything.
*mandatory " am not your lawyer" disclosure, this advice is worth what you paid for it..
Thanks Kevin, this is a good point!
Main reason for LLC is for legal protection so it doesn't make sense to incur more filing fees when the deed is under my name. I also didn't know about the virtual mail address, that will be something i'll look into!.
Thank you!
Post: Using LLC for Rental License while Deed is under personal name
- Investor
- Posts 45
- Votes 11
Hello all,
I'm new to the forum and just started in Real Estate Investing. Recently, I've purchased a duplex in the great city of Philadelphia and wishes to rent it out. I'm in a pickle as I want to use a LLC but it seems like I don't need one due to the infancy stage of my investment growth. However, I want to use a LLC for my rental license while still enjoy the better interest rates with the properties under personal loans (vs. a commercial). Will the LLC have the same legal protection on the rental property if the rental license is under its name rather than mine?
Thank you,