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Updated about 5 years ago on . Most recent reply

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172
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Ben Feder
  • Investor
  • Philadelphia, PA
57
Votes |
172
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Should I form a different LLC for each property I invest in?

Ben Feder
  • Investor
  • Philadelphia, PA
Posted

I will be investing in apartment buildings. I think while reading a real estate book a few years back, I learned that you should possibly setup an LLC for each property that you invest in, to keep properties separate and each as a business in its own. Not sure if I'm remembering that right. What are the pros and cons of doing this? Any point to do it or not do it this way? Thanks.

Most Popular Reply

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Jim Pellerin
  • Real Estate Consultant
  • USA
750
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1,023
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Jim Pellerin
  • Real Estate Consultant
  • USA
Replied
Originally posted by @Ben Feder:

I will be investing in apartment buildings. I think while reading a real estate book a few years back, I learned that you should possibly setup an LLC for each property that you invest in, to keep properties separate and each as a business in its own. Not sure if I'm remembering that right. What are the pros and cons of doing this? Any point to do it or not do it this way? Thanks.

The main reason you would want to do that is to protect your assets from each other. The other big reason is that when you sell 1 you can just sell the company and not the property. This has some tax benefits.  

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