LLC For Every Property

[Shawn Dandridge]

I plan on buying several properties for rent and fix and flip soon. The main thing I am running into is how to structure the company for rentals. I have heard I should put each property in its own LLC and then I have heard I could put max of 3 properties into one llc to be on the safe side and then i have heard of people putting all properties into one llc with a huge liability insurance policy. Can I get some insight from the "pros" on this board as to what they do.

[Rob Gillespie]

Attorneys will tell you it is a great idea, and an accountant will tell you it is a tax nightmare! LOL!
When I got started 15 years ago, I left an attorneys office with more entities than I had properties! Seriously!
I think there is a happy medium. I currently have a hand full of entities, and each hold multiple properties.
Make sure you carry good insurance, insulate the more risky properties into there own nest. Above all, even if you have free and clear property, put a lien on it from another entity. This way if you get sued and loose, at least the judgment will not go into first position. Good luck with your new empire! I hope this advice helped. :D