Experienced Investors: help with llc question

[Jessica Lamont]

Hello, my CPA is telling me that most of his clients form an LLC for each property. I plan to really build my portfolio and seems like a lot. If it's the right thing to do, of course I'll do it but curious other perspectives. Thanks!

[Charles Carillo]

@Jessica Lamont

It really depends on your total net worth, the equity in each property, and your insurance. For example; if someone is worth $1 million; they are not going to be setting up a new LLC for each property with $25k-$50k of equity. They might form one for each $100k-$200k+ of equity.

If I am buying a commercial property (5+ unit apartment building); I would put that into its own LLC. If I am keeping a property for long-term; I might also put that in its own LLC.