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Updated almost 13 years ago,
strucuring entities
OK - I have an idea here and want some feedback.
Say my wife and I create a "parent" company, or holding company, a 2-member, 50/50 LLC. Let's call it "Joe's Rentals, LLC" for the sake of this post.
Now, say I buy an apartment building or complex called "ABC Apartments" and the seller/current owner of record is "ABC Apartments, LLC".
Since the apartment has a "name" that is known in the community, can I:
1. Buy the apartment under Joe's Rentals, LLC, but still allow it to be called "ABC Apartments"? Would I have to set up a "DBA" in order to do this??
2. Literally BUY the LLC as well as the apartment complex itself, i.e., I'll buy the complex, but also, the LLC under which it is held? Then, organize that LLC as being owned by my existing LLC? If this were an option, how would it be structured loan-wise? Would the bank/lender still call it a CRE loan, or, would they look at it as if I were getting a loan to acquire the actual "business" entity and all its "contents" (this case likely just the building and perhaps some office and maintenance equipment that goes with it)
3. Create a new LLC that is a single member LLC, with the "member" being Joe's Rental's LLC, and call it something like "ABC Apartments of Akron, LLC", being a slightly different, but recognizeable name for the apartment I am acquiring.
Sorry if these are stupid questions, I've only dealt with small stuff up until this point.
Thanks