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Updated about 10 years ago on . Most recent reply

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Rob Fordham
  • Powell, OH
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Different LL C for each property?

Rob Fordham
  • Powell, OH
Posted

Question -- do you set up an LLC for each individual property typically or one for all your properties?

Thanks for any help

Rob

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Nicole A.
  • Rental Property Investor
  • Baltimore County Maryland and Tampa Florida
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Nicole A.
  • Rental Property Investor
  • Baltimore County Maryland and Tampa Florida
ModeratorReplied

A separate LLC for each property is overkill. And a lot of extra work. And paying for multiple businesses. It really doesn't protect you much. Especially if you have a mortgage on these properties anyway, if someone sues you and manages to win, what are they going to get out of you if you have hardly any equity in your properties?

The key is have proper insurance. The other possibly even bigger key is to do everything within the law. Know your rental and real estate laws.

While it can be tough to get a loan for a LLC, I got my LLC's first mortgage within a few months of forming. Six months later, got another mortgage....and less than a year later, yet another mortgage. All with the same local-area bank. Your best bet is to go to local banks in person and talk to them. But talk like you know what you're doing. Show them the numbers on your potential deals. You'll probably have to sign a personal guaranty, but the loan will be in the LLC name.

  • Nicole A.
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