Should I get an LLC If I want to become a investor in real estate

[Davere Currie]

Should I get an LLC to for investing in real estate ?

Or Should I just set up a business account.

[Scott Smith]

Hey @Davere Currie,

The main purpose of implementing an LLC into your investments is to separate your personal liability from that of the investments that you have. If there are problems in the future, a properly established LLC will essentially work as a "stop-gap" between yourself and your assets. I often break it down into the "four pillars" of protecting your assets. The first pillar is a good insurance policy as that cover the majority of your exposure. However, it only protects you from one type of liability: accidents.

After that you want to compartmentalize your assets, which is often accomplished through the use of LLCs or corporations. I personally find the Series LLC to be a great tool for the individual investor who is planning to expand their operation, as it allows for you to scale infinitely - check out this article to learn more. The third pillar is somewhat similar - you want to separate your operations from your assets. That means you establish a Traditional LLC to carry out the operations of your investments, in order to separate the liability from your assets, including: paying property management, paying contractors, collecting rent, marketing, etc. Finally, with the use of Trusts while establishing these structures you can add a level of anonymity by removing your name from public record.

With concerns regarding the funding of an LLC, I would recommend reading this article. There are many different ways to accomplish what you are looking for, what matters is that (a) it fits your portfolio and (b) is implemented properly. Feel free to connect with me if you have more questions/concerns.