Operating multiple LLCs

[Account Closed]

So I have a question that I've doggedly tried to find the answer to. I've heard from the REI community that it's best to put each investment property under their own LLC for personal asset protection. However I've also noticed that many real estate entrepreneurs run their own company, "ABZ Properties LLC." My question is... how is that structure set up? Is each property LLC bundled under the umbrella of the ABZ Properties LLC? If so doesn't that put the whole of ABZ Properties at risk? I am just wondering, as I foresee myself setting up a similar LLC in the future, and am trying to understand all the details of it. Thanks very much!

[David T.]

If you're investing in multiple properties and working with different partners, it's about how you structure your entities (Corps and LLCs) and a lot has to do with the value of each investment.

Using an umbrella S corporation with a subsidiary for each deal is a common way to do this. Some Investors use the LLCs up to a certain limit of value as opposed to individual deals.

If you're serious about investing, this is something you should consider seriously. Professional advice is recomended as each investor will have different needs.

Good luck with your deals!