Buying a property in an LLC

[Keegan Uderitz]

Hello everyone!

Has anyone had experience buying an investment property with a family member in an llc? Do conventional home loans allow you do buy with an llc? What are the benefits to buying in an LLC?

My situation is that I am buying 50/50 a 4 plex with my sister and her husband, should we use an LLC? Help.

#firsttimers

[Todd Rasmussen]

@Keegan Uderitz

Think you'll end up taxed at the llc level with a multi member llc. When we did this, we had each half claim half the income and half the expenses on our personal tax returns. LLC will complicate lending (not going to be possible) and taxes and organization.

If you have the kind of family that can do business together you don't need an llc. If you don't have the kind of family that can do business together, you shouldn't do business together. Sometimes people are wrong when they classify their family into one of those two categories. Mines a little more of the hold my beer approach than some others might recommend, but I don't think you need to over design your asset protection strategy as first timers. Just get a bunch of liability coverage and enjoy the first of hopefully many.