Purchasing under an LLC

[Marco Antonio Hernandez]

Hey BP family,

I'm a newbie investor and plan to purchase my first investment property in the next couple of months. I've had a LLC for a number of years and was wondering if it would be prudent to purchase my investment properties under the LLC?

[Allan C.]

@Marco Antonio Hernandez separate LLCs for each property is overkill in most scenarios, and you can search the forum for plenty of guidance on this topic. It all comes down to risk vs effort and cost.

Ask yourself how much equity is inside each asset (ie, not the value of the property, but your equity in the property), and what % of your net worth does it represent. Then do research on how much effort and cost is required to maintain a LLC (bank accounts, accountants, SOC fees, lender limitations, insurance premiums, interest rate differences, etc).

It’s more efficient for most ppl to get umbrella insurance and focus on operating the business with integrity.