Talked about before but where do we stand now - transferring to an LLC

General Real Estate Investing
1

Hey all,

new member here. I have several multifamiles, all under my name, and all are with mortgages. I want set each of the buildings in a separate LLC and then have a 'management llc" (me) be their manager and so on.

I am concerned about the whole DOS clause although, as been said before, many people transfer it into an LLC, while taking the risk, but almost no one gets a call from the bank to pay up.

I also read about the whole land trust thing but I feel as if some say it will work while others say it won’t… Unlike the LLC only transfer which everyone agrees as to its effectiveness and risk.

So where do we stand on this today? Any new ideas?

Thanks!

2

the whole point of an LLC is liability protection.

if you are personally managing the properties, then having an LLC will do nothing. you will be personally sued in the event you are negligent, and the LLC cannot protect you from that.

if you have a management company (not one that you personally own, operate and manage) then an LLC may insulate you from negligent actions of the manger. The LLC property owner will still be liable, but you personally will be insulated.

This is the latest I hear from my atty clients. Although, some attys still claim otherwise and some of my clients have LLC’s flying around all over the place. So your mileage may vary.