What do investors do when they have multiple properties? Multiple LLCs?

[Kevin Alvarado]

What do investors do when they have multiple properties? For example, 15 different properties for rentals, do they just create 15 different LLCs? For fix and flip, that would be a separate LLC too? Any clarification would be great. Thanks!

[John Warren]

@Kevin Alvarado for the most part, we keep each building in a separate LLC. This means having a separate bank account, and also having separate books come tax time (more expensive). With that said, this is something that would be different for each investor. If you own a bunch of 30k houses, you might throw a few into one LLC. If you own a 500 unit A class apartment complex, then you might have a different LLC own the ownership interest in your property level LLC. It is complicated, and this is why you need a great accountant and attorney as you grow.

With that said, this whole conversation has stopped more investors from getting started than almost any other. Find a deal and buy it. The asset protection becomes more meaningful as you have assets to protect. If you are house hacking then this is an irrelevant conversation, which is another thing that I see missed all the time.