Home Buying in 48313>Question Details

Walter Jacko…, Home Buyer in 07040

Should you incorporate when buying a multi-family investment property to insulate your primary residence from potential problems?

Asked by Walter Jackowski, 07040 Fri Jun 25, 2010

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4
Realtors are not Attorneys nor accountants ..these are the professional you need to consult. Options can include family trust, corp. LLC or PA. to name a few. These professionals will point you to the right direction.

Phyllis Crosby, Realtor/GRI
Re?Max Top Notch Associates
Tampa Bay, Florida

phylliscrosby@tampabay.rr.com
0 votes Thank Flag Link Tue Jul 6, 2010
Walter,

Like two others mentioned you should work with attorney/ lawyer/ accountant to make sure your assets and actual type of investments are covered with property protection.

You may need some insurance as well depending on the assets.

Possibly LLC has to be considered depending on whether there are other partners involved. It would best to work with legal professionals on these aspects.

Ron
http://www.youtube.com/TBMHomes
0 votes Thank Flag Link Fri Jun 25, 2010
Check with a lawyer or an accountant.

Many will recommend that you create an LLC and move the property or properties into the LLC. You won't find lenders willing to lend to the LLC, so generally you have to purchase in your own name, then transfer ownership to the LLC. That still leaves you on the hook for the mortgage, but--properly done--insulates you from most liability.

There's some debate about whether you should have an LLC for each property, or only one LLC for all properties, or whether each LLC can hold multiple properties. Different lawyers and accountants will give you different advice on that question.

But you should protect yourself when buying investment property.

Hope that helps.
0 votes Thank Flag Link Fri Jun 25, 2010
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
In order to best protect yourself you may wish to consult with an attorney; he/she will be your best source of information as it relates to your specific situation.
0 votes Thank Flag Link Fri Jun 25, 2010
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