Greetings All. I am just getting started investing in realestate. I will be forming a LLC next week and have a couple of 4-plexs to look at already. My question(s) refers to the amount of properties a LLC can legaly hold and the management of multiple LLC’s. I’ve browsed this site for several days (much to my wifes annoyance, but research and patience pay off) and there has been much discussion on LLC’s.
#1 Is there a limit to the amount of porperties that an LLC can own?
#2 Assuming that a LLC can own only 10 propertites then if you have 100 properties, that would be 10 LLC’s. That sounds like it could be somewhat cumbersome. Is it? or is there a better way.
I dont know if it matters what state you live in, but I live in Oregon. But, I also have an interest in Boise, Idaho area.
i think you’re doing it backwards. first u find the the deal, then you set up the asset protection. the logic is most people don’t have any assets to protect when they start out.
i just bought a few homes in boise. the market has suddenly picked up since july. let me know how oregon is working out.
Well, how about getting the first one under your belt? Good Luck!
As far as the entity, depending on who you listen to, it will end up being a combination of entities.
For flipping, S Corp.
For holding, LLC’s one per property. In florida the maintenance fee of an LLC is 50 bucks a year, in California is like 800 a year, so it depends where you are.
For the best (yeap could be cumbersone) property in Land Trust, beneficiary is an LLC, the LLC’s members are a couple of Personal Property Trusts, those trusts are owned by you and your wife.
If you can keep things straight it would be neither expensive not cumbersome.
Before you open 100 LLC’s, try to do the first one though.
In my endeavors I have found that using a blend of different entities has been the best for both Liability and Tax purposes.
Ted is right that you don’t need to do it to get started, but it is good to have a plan set forth.
Donna Fox, an attorney and investor, has some great audio from a presentation she gave. It was on what she called “PREMES - Professional Real Estate Multiple Entity Structure”.
Pat Tarr has a great course for asset protection for $600.
I have heard her speak at the Mid Atlantic RE conference in Phili this month. I plan on making the purchase. Her suggestions are in line with Anderson Law Group. She advises C-Corps , Land Trusts, LLC’s and finaly a Living Trust to assign the benificial interests. Her course is called Armor & Camo.
Walt B