Dallas-Fort Worth Real Estate Investor Club

Using LLCs for Rental Property

  • 06 Oct 2017 2:03 PM
    Message # 5299745

    Folks,

    What are the advantages and disadvantages of using LLCs for rental properties. I know many investors use them to protect personal assets from law suits. I was hoping someone with experience and/or knowledge in this area would share some information. Do you have one LLC per property or use a multi-layered strategy with parent and child relationship between the LLCs. Would it be easy to transfer a property from the investor to his LLC if the property has a mortgage on it. What LLC structure is best in Texas?

    thanks,

    Sanjay


    Last modified: 06 Oct 2017 2:04 PM | Sanjay V
  • 07 Oct 2017 6:25 AM
    Reply # 5301203 on 5299745

    Sanjay,

    All very good questions but my best advise is to see an attorney that creates legal entities and a CPA because there are many variables.  Yes you can go online and create your own entity however it may not be the best for your particular situation and business model.  

  • 07 Oct 2017 3:03 PM
    Reply # 5301641 on 5299745
    Deleted user

    Sanjay,

    Recommend going to lonestarlandlaw.com and reviewing their info.  I use an umbrella policy, series LLC and land trust.

  • 09 Oct 2017 12:16 AM
    Reply # 5302948 on 5299745
    Robin Carriger (Administrator)

    We use Texas Series LLCs for our rentals.  Real Estate Attorney, Milt Colegrove, helped us get it all setup a few years ago.  I highly recommend you give Milt a call.

    Thanks,

    Robin

  • 16 Oct 2017 10:17 AM
    Reply # 5316737 on 5299745
    Deleted user

    I use separate (not series) LLC's for each applicable transaction...  

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