How do you hold your properties?

General Real Estate Investing
1

I have read all your posts about Trusts, LLCs, Sole Proprietorship, etc. Hypothetically, is someone is going to own 10, 20 or 100 properties at once, is there a way to structure a Series LLC or something else so you dont have to do duplcate paperwork and have so many checkbooks? Like 1 LLC that owns all the others?

2

In NC, one LLC costs 200 dollars a year. My state farm agent charges 200 bucks a year for an umbrella policy for 5 million.

It’s a no brainer, save your $$ for more important things and keep your life MUCH simpler by holding title in your own name (and in NC, make sure your wife is listed too on the deed).

John

3

I can only speak for NC, but there are not many advantages for holding title in an LLC in NC. NC State law says, if a title is held jointly by husband and wife, and there is no language to the contrary, it is held by “tenants by the entirety”

There are a lot of benefits to holding title this way. The most important one is that single judgment creditors cannot attach or execute on a lien on your property. So somebody sues only me or only my wife, like a credit card in my wife’s name only and she doesn’t pay, my property is not at risk. There is also an automatic rights of survivorship. If I die, the property is automatically hers, no probate.

States where tenancy by the entirety may be used for real estate: Illinois, Indiana, Kentucky, Michigan, New York, North Carolina, Oregon.

4

Series LLCs only apply in a series state and are untested.

Equity stripping is the easiest way to minimize the amount of accounts and management systems while protecting the property. However, listen to John and get insurance. Unless your net worth is more than a few million dollars, you can just insure it as the vast majority of cases settle for the insurance limits and it’s a no-brainer when the insurance payout is more than they will ever get if they forced you to liquidate everything. If a judgment ever exceeds your net worth, then declare bankruptcy. The creditor will probably force you there anyway even if you have LLCs and other entities.