Pros & Cons of Using an LLC For Rental Property w/ Matt Faircloth for BiggerPockets
There is so much conversation on LLCs. From the basic stuff like what are they and why should we use them to the more complex like which state should we register in and the difference between a Manager Managed LLC versus a Member-Managed.
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Today I am going to take a stab at one of the questions that goes around a lot. Should you get a new LLC every time you buy a property? There are pros and cons for doing this and in today's video I go over them in detail. In short form, here are some highlights:
Pros of using a new LLC every deal:
1. Ownership structure - perhaps you are working with several different owners on a new deal. It makes sense to have a new LLC as it will define the ownership percentages and the roles of each owner.
2. You are working in a new state - this could be argued either way but to me it makes sense to incorporate in the state where your investment property is.
3. You are doing a flip - many investors do a new LLC every flip. This makes sense as it separates that flip from other properties with respect to taxes and liability. More on this in the video.
4. Asset protection - holding each purchase in it's own LLC will compartmentalize each property from the other. If there is a liability claim with one property it won't affect any others held by you. Some would say that this is the main reason to hold each deal individually. Watch the video for a deeper conversation on how valid this is.
Please email us any real estate questions to HelpMe@DeRosaGroup.com and we will answer them on an upcoming episode!
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The DeRosa Group on Social Media:
https://www.facebook.com/thederosagroup/
https://www.derosagroup.com/
Matt Faircloth on Social Media:
https://www.facebook.com/mdfaircloth
https://www.linkedin.com/in/mdfaircloth
https://www.instagram.com/matt_derosag/
https://www.tiktok.com/@matt_derosag?...
QUESTION: What videos would you like to see on this channel?
This video is not sponsored. Some product links are affiliate links which means if you buy something, we'll receive a small commision.
How to Remove a Bad Tenant (without having to evict)
https://www.youtube.com/watch?v=FnGZQOebixY&t=1s
Maximize Your Cash Flow!
https://youtu.be/TOagwW4ITTA
15 Year Old Makes $15,000!
https://youtu.be/EgsvgMdB8x0
Tips for Hosting a successful Open House
https://youtu.be/8DBtD1OcjKQ
Best ways to Collect Rent From Tenants
https://www.youtube.com/watch?v=iOeTxzDjXWY&t=3s
The Pros and Cons of Using LLC for Rental Property
https://www.youtube.com/watch?v=edHaGYXhH1I&t=24s
21 Year Old Makes $23,000 on First Wholesale Deal
https://youtu.be/UkeUxkLQTFc
#rentalpropertyLLC #DoIneedAnLLC #HowtogetanLLCforrentalproperty
Видео Pros & Cons of Using an LLC For Rental Property w/ Matt Faircloth for BiggerPockets канала Derosa Group
📚 Need Some Proven Strategies for Raising Private Capital?
Grab a Copy of Matt's book "Raising Private Capital" https://amzn.to/3hGCAyT
Today I am going to take a stab at one of the questions that goes around a lot. Should you get a new LLC every time you buy a property? There are pros and cons for doing this and in today's video I go over them in detail. In short form, here are some highlights:
Pros of using a new LLC every deal:
1. Ownership structure - perhaps you are working with several different owners on a new deal. It makes sense to have a new LLC as it will define the ownership percentages and the roles of each owner.
2. You are working in a new state - this could be argued either way but to me it makes sense to incorporate in the state where your investment property is.
3. You are doing a flip - many investors do a new LLC every flip. This makes sense as it separates that flip from other properties with respect to taxes and liability. More on this in the video.
4. Asset protection - holding each purchase in it's own LLC will compartmentalize each property from the other. If there is a liability claim with one property it won't affect any others held by you. Some would say that this is the main reason to hold each deal individually. Watch the video for a deeper conversation on how valid this is.
Please email us any real estate questions to HelpMe@DeRosaGroup.com and we will answer them on an upcoming episode!
⚙️ Useful Gear & Gadgets We Use⛓
💡 Handy Ring Light & Phone Mount: https://amzn.to/3kyxu9B
💎 Crystal Clear 4K DJI Pocket 2: https://amzn.to/3iocCiv
📱 Compact Desk Phone Tripod: https://amzn.to/3zcr83F
🔦 Mini LED Lume Cube: https://amzn.to/3zdEBbN
The DeRosa Group on Social Media:
https://www.facebook.com/thederosagroup/
https://www.derosagroup.com/
Matt Faircloth on Social Media:
https://www.facebook.com/mdfaircloth
https://www.linkedin.com/in/mdfaircloth
https://www.instagram.com/matt_derosag/
https://www.tiktok.com/@matt_derosag?...
QUESTION: What videos would you like to see on this channel?
This video is not sponsored. Some product links are affiliate links which means if you buy something, we'll receive a small commision.
How to Remove a Bad Tenant (without having to evict)
https://www.youtube.com/watch?v=FnGZQOebixY&t=1s
Maximize Your Cash Flow!
https://youtu.be/TOagwW4ITTA
15 Year Old Makes $15,000!
https://youtu.be/EgsvgMdB8x0
Tips for Hosting a successful Open House
https://youtu.be/8DBtD1OcjKQ
Best ways to Collect Rent From Tenants
https://www.youtube.com/watch?v=iOeTxzDjXWY&t=3s
The Pros and Cons of Using LLC for Rental Property
https://www.youtube.com/watch?v=edHaGYXhH1I&t=24s
21 Year Old Makes $23,000 on First Wholesale Deal
https://youtu.be/UkeUxkLQTFc
#rentalpropertyLLC #DoIneedAnLLC #HowtogetanLLCforrentalproperty
Видео Pros & Cons of Using an LLC For Rental Property w/ Matt Faircloth for BiggerPockets канала Derosa Group
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