Corporation vs personal when buying and holding

[David K.]

Hello BP community! My partner and i just made an offer on our first 2 buy and hold properties. Should we open up a corp or simply use our personal names for now and going forward? Corp means that I don't get the same mortgage terms, personal means that I need to get a balloon insurance (whatever that is). Also from the partnership point of view especially for a long-term ahead, I want to make smart decisions now so I don't regret later:)) I would appreciate your input on cons and pros - I need to decide quickly which is the proper way to go! Thank you all!

[Corina Eufinger]

I like using corporations for buy and hold. It offers the same insulation as an LLC but it also changes how your profits are taxed and when. Its much more beneficial in C Corp. I would never purchase buy and hold as "Corina Eufinger" or DBA. Leaves way too many liabilities and other issues out there.