Home Buying in New York>Question Details

Pmm, Other/Just Looking in New York, NY

Pros and Cons of purchasing under an LLC re: 459 Washington Street #2S

Asked by Pmm, New York, NY Tue Apr 12, 2011

Can anyone tell me the pros and cons of purchasing property as an individual or as an LLC? Interested in this listing. Is it difficult to get financing under an LLC as opposed to owning it personally. Where would I get most benefit from?

Thank you

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Answers

8
Pmm,
This question is best answered by your accountant and your attorney. I would be overstepping my area of exerpertise as a real estate agent to answer this question. I will leave that to the qualified specialists in their field and will have a terrific attorney I have given several of my most recent deals to the link to answer you here. I can tell you that you cannot purchase a co-op as an LLC; it must be a condo, and the property you have picked out is a condo.
What is very important to bear in mind, is that it is very important to use a skilled, experienced real estate agent as your buyer's agent. Whether it is to go forward on the property you have already identified of whether you broaden it, we have access to information that you would not find in the listings on public websites. We can streamline your search, negotiate on your behalf, and take you through all the steps of your purchase. New York City real estate is flukey and quirky and it is greatly to your advantage to have a professional on your side. The sellers all have agents, and so should you. It levels the playing field, saves you money and aggravation, and there is no cost to you, as the seller pays the commission.

Best,
Jenet Levy
Halstead Property, LLC
212 381-4268
jlevy@halstead.com
http://jenetlevy.halstead.com for all NYC listings
1 vote Thank Flag Link Tue Apr 12, 2011
I have several properties and they are all owned in LLC's. It puts a layer of protection between you and the tenant (assuming they are investment properties). Each of my properties is in a separate LLC.

I purchased them under my own name (for financing) and then moved them into the LLC's. Not sure how "kosher" that is; please discuss with an attorney.

Whether you purchase into an LLC or finance an investment property, the rates will be higher than a primary home.
Web Reference: http://gailgladstone.com
1 vote Thank Flag Link Tue Apr 12, 2011
As stated earlier people primarily use LLC's for protection and tax considerations. Your accountant can answer every question on this.
0 votes Thank Flag Link Fri Apr 15, 2011
Additionally, LLC's offer protection from creditors. This can be important if you own a business or are self-employed. There may also be substantial estate planning benefits.

Financing will generally be more difficult to obtain when using an LLC in today's lending environment. There are lenders that will understand your particular financial objectives. These lenders will generally price the loans a bit higher in keeping with the historical risk levels associated with these types of mortgages

Ultimately it is best to discuss your situation with you financial planner, accountant and attorney. They will assist you in coming up with the structure that best suits your needs now and in the future.
0 votes Thank Flag Link Tue Apr 12, 2011
To further answer your questions you can contact Derrick Gibbs Esq. at (C)646 831-7028 or (B) 212 423-5646.


Good Luck,
Carolyn Chappelle
Bond New York
0 votes Thank Flag Link Tue Apr 12, 2011
Consider asking your question to an attorney who specializes in real estate and or your tax professional; they can best advise as to which scenario will personally benefit you the most.
0 votes Thank Flag Link Tue Apr 12, 2011
This will depend on what your goals are for purchasing to the property. Are you planning to live in it, rent it out, etc? You will want to speak to a real estate attorney, who will be able to best advise you on how to hold property that will be the most benefical for you.

Jennifer Chiongbian
SVP/ Associate Broker
Rutenberg Realty NYC
917-250-2284
212-688-1000 x 189
0 votes Thank Flag Link Tue Apr 12, 2011
The pros are mostly from a privacy and liability point of view. If it is a new LLC without a financial history the bank will be lending based on your credit and assets vs. the new company.

Hope that helps,
__________________
Derek Lee
Managing Partner
L.G. Fairmont Group
http://www.lgfairmont.com
Web Reference: http://www.lgfairmont.com
0 votes Thank Flag Link Tue Apr 12, 2011
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