Buying rental properties - Individual or LLC ??

[Paul Greenberg]

I'm ready to dive in to rental property purchases in Palm Beach County, FL. Will be doing so with a family member and I don't know whose name(s) the property should be under, whose name(s) the bank accounts should be under, etc. 

If one partner is a 50-something and the other is 19 years old, would we refinance individually or under an LLC ?

Lots of questions, looking for an advisor.

Thanks in advance

[Ryan Daigle]

Hi @Paul Greenberg. Creating an LLC to define your partnership, ownership stake, decision making process, etc... is always the safest option (and the LLC will be on the property title). However, that means you'll get less favorable financing since commercial financing can be more expensive than a personal loan. So it's about tradeoffs. If the deal works with commercial financing I would go the LLC route since that better protects everybody's long term interests.

Congrats on getting that first deal!