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Updated over 7 years ago on . Most recent reply

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Eric Armstrong
  • Investor
  • Wilmington, DE
121
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388
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Any advantage to buying the LLC that owns the property?

Eric Armstrong
  • Investor
  • Wilmington, DE
Posted

I'm looking into purchasing a 6 unit(2 businesses and 4 residential) that is owned by a LLC that only owns this one property. I was wondering what the advantages/disadvantages were to purchasing the LLC instead of the property in my LLC? Property is in Delaware. Thanks in advance.

Most Popular Reply

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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
13,508
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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
Replied

Disadvantages, 

You inherit their depreciated basis in the property both for future cap gain taxes and for depreciation.

You inherit possible unknown liabilities lingering out there.

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