All Forum Posts by: Olia Fogel

@Ryan Judkins

I believe you are referring to a Series LLC, which is a great option for holding multiple properties. You can also hold properties all over the US with this type of entity. I usually recommend setting it up in Texas or Wyoming.

@Nami Do

I believe having a Series LLC is a great idea if you plan on using it for holding real estate, syndication interests etc. This type of entity does have unlimited scalability, while each series receives complete liability protection. I would recommend just starting a new Series LLC in TX, rather than converting your existing one. This way it will be correctly set up from the beginning, including having an operating agreement drafted in a way that's consistent with the Series LLC's requirements.

@Ben Curry If you own multiple properties, then I would recommend looking into a Series LLC, rather than setting up a separate standalone LLC per property. Series has unlimited scalability, and creating new series does not require any additional filings or fees with the state. Each series receives complete liability protections while you avoid the cost of creating an entirely new LLC each time you acquire a new property. 

When it comes to insurance, it is usually sufficient to add the legal property owner (LLC in this case) as an additional insured to your existing policy.

@Rosalie Evans Is it a single family home? Generally, if the property is under 5 units, you would be able to avoid the due on sale by using a Land Trust + LLC combo.

I would recommend looking into a combination of a Series LLC as a holding company plus a Traditional LLC as an operating company. Series LLC is great primarily because it has unlimited scalability, and it can be used for holding both flips and long term rentals. Creating new child series does not require any additional filings or fees with the state, yet each series receives complete liability protections while you avoid the cost of creating an entirely new company each time you acquire a new property.

Traditional LLC, or an Operating Company, can be used for all property management activities, as well as to obtain financing.

@Christopher Lynch If you both already have LLCs set up, then you can just have an attorney create a JV agreement for you, with both of your LLCs as the parties to the deal. The JV agreements will outline profits, terms etc.

@Victoria Cashin You can only set up the Series LLC in a state that allows the in-state formation of Series LLCs, even though all states recognize a Series LLC. You can also hold properties all over the US with this entity. I usually recommend setting it up in Texas or Wyoming.

@Victoria Cashin 

If you plan on acquiring (or already own) multiple properties, then I would recommend looking into a Series LLC, as it has unlimited scalability. Creating new series does not require any additional filings or fees with the state. Each series receives complete liability protections while you avoid the cost of creating an entirely new LLC each time you acquire a new property. Having a Series LLC will also not complicate your taxes.

@Santosh Prabakar I would recommend looking into using a combination of an LLC and a Land Trust to avoid triggering the due on sale clause. Using this combination also helps with transfer taxes and keeping your real estate holdings private.

@Dustin Verley Yes, it is possible to convert an existing LLC to a Series LLC. However, the process is different depending on which state your LLC is registered in.