Newbie Buy and Hold Investor - Chicago

[Brya Freeland]

Hello BP Community, I need some perspective on the following topic.

As a new investor specifically targeting buy and hold properties in the Chicago area, I want to know if setting up an entity ie. LLC, Illinois Land Trust, etc. is necessary starting out? I understand that once I have a number of properties under my belt, then it may be more manageable to create a business entity to house these assets. However, does anybody have any Pros v Cons in going with an LLC, a Land Trust, or investing as an individual? FYI - I only recently discovered the land trust option after talking to a local attorney in the Chicago area.

Thanks

[Crystal Smith]

Originally posted by @Brya Freeland:

Hello BP Community, I need some perspective on the following topic.

As a new investor specifically targeting buy and hold properties in the Chicago area, I want to know if setting up an entity ie. LLC, Illinois Land Trust, etc. is necessary starting out? I understand that once I have a number of properties under my belt, then it may be more manageable to create a business entity to house these assets. However, does anybody have any Pros v Cons in going with an LLC, a Land Trust, or investing as an individual? FYI - I only recently discovered the land trust option after talking to a local attorney in the Chicago area.

Thanks

We hold our portfolio in land trusts for the following reasons:

1. Privacy- We close inside of Land Trusts for privacy. The Land Trust in on the public record, not our LLCs or us. 
2. Transfer of Assets- We use to purchase a lot of SFR from Fannie/Freddie. Many of which had deed restrictions that did not allow resale of the property within 90 days of closing. Our solution to comply with the deed restriction if we had a sale within the 90 day was to transfer the asset inside of the Trust. The Trust still owned the asset but we were no longer beneficiaries of the Trust
3. Inheritance- When that day comes our children are the beneficiaries inside the Trust. Uncle Sam doesn't get a cut.