23 - Should We Create An LLC For Our Real Estate Investments?

This is a question that comes up a lot – even though it’s probably not the most important question.  Your investment strategy is more impactful than a choice of a business entity.

Nevertheless, an LLC can be a useful tool for some types of real estate investors and certain investments.

What are the advantages of having an LLC for your investments?

• A properly created and managed LLC can shield your other assets from liability and debts.
• It separates your personal and business affairs.
• It allows you to take on some debt that is either not personally guaranteed or not on your personal credit report.
• It facilitates simple and complex business arrangements.

What are some disadvantages?

• Some lenders will not allow it.
• You are mostly limited to commercial loan products, which have higher fees and rates.
• There are costs to the state.
• You must manage it appropriately to keep the benefits.
• You are still liable for any personally guaranteed debts.
• There is some up-front work.

What are some alternatives?

• Corporations and S-Corporations for active income.
• Umbrella insurance and other insurance products.
• Partnership Agreements.
• A management entity instead of a title-holding entity.

Join Jason Muth and Attorney / Broker Rory Gill of NextHome Titletown and UrbanVillage Legal in Boston, Massachusetts for another episode of The Real Estate Law Podcast!
_____________________
Do you have questions for us? Interesting in working together? Do you have ideas for a future podcast episode? Email us today!


Need a Keynote Speaker, Panelist, Conference Session Moderator, or Podcast Guest? Real Estate Attorney / Broker Rory Gill or Jason Muth are available. Email Rory or Email Jason today!


We're powered by the following sponsors:

NextHome Titletown Real Estate, Greater Boston's progressive real estate brokerage. NextHome Titletown Real Estate is a wholly-owned franchise of NextHome, Inc., the fastest growing real estate franchise in the United States, with 500+ offices and 5,000+ NextHomies in 48 states since 2015.

UrbanVillage Legal, Massachusetts Real Estate Counsel serving savvy property owners, lenders and investors more at UrbanVillageLegal.com.

The Real Estate Law Podcast is hosted by Jason Muth and Attorney / Broker Rory Gill.

This podcast and these show notes are not legal advice, but we hope you find both entertaining and informative.

You can follow our sponsors here:

NextHome Titletown Real Estate on Instagram
NextHome Titletown Real Estate on Facebook
NextHome Titletown Real Estate on LinkedIn

NextHome Titletown Real Estate Search:
https://search.nexthometitletown.com/​​

UrbanVillage Legal website

Attorney Rory Gill on LinkedIn

The Real Estate Law Podcast, because real estate is more than just pretty pictures and law goes well beyond the paperwork and courtroom arguments. Thank you for listening and for reading these show notes!