Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
1031 Exchanges
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 13 years ago,

User Stats

77
Posts
2
Votes
Joe Smith
  • Akron, OH
2
Votes |
77
Posts

strucuring entities

Joe Smith
  • Akron, OH
Posted

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

Loading replies...