Pro and cons of Getting a llc

[Dovi Schwartz]

I've been wondering this for a while successful real estate Investors that have that say 50+ properties how do they have 50 loans they probably can't refinance that many times so I was told that an LLC helps how does a LLC

Help with that matter and in general why and what is the purpose of getting an LLC

[Erik W.]

@Dovi Schwartz, I've got three LLCs currently, so yes, I think they have value when set up properly and run correctly.  

In my state anyone can set up an LLC using a tool on the Secretary of State's website. It only takes about 15 minutes and costs an $80 processing fee. I've done two myself, 15 and 8 years ago respectively.

Earlier this year, I hired an attorney to review all our documents and structure them more professionally.  The cost was nominal: $200 each.  Then I had her set up a new one for a self-storage business.  $250 for that one.  That fee included about an hour of her time where I could ask questions about avoiding behavior that could render them useless.  Well worth the time and money to seek professional advice.

Btw, if you are using LLCs for asset protection, I recommend also getting a sizeable umbrella liability policy. They are relatively inexpensive and provide a lot of protection if your LLC does get pierced. If you already have a policy, make sure your LLC(s) are named as additional insured parties.