How many properties per llc

[Luke Saglimbeni]

How many properties in each LLC do you hold. One per llc? Or more? Can tenants sue funds from other properties in llc?

[John Underwood]

Depends on your risk tolerance. This just came up last night at my local Real Estate Club meeting where 2 attorneys where answering questions.

You can put 3 properties in one LLC or just one, you could put put 500k worth of properties per LLC. You can put a couple of lower end properties in one LLC and nicer more expensive once in a single LLC. Its all up to your risk tolerance and how much you want to spend on it.

In my state it only costs $110 per LLC on the Secretary of State site to create an LLC, and there is no annual fees to maintain it. You should have an attorney create your Articles of Incorporation and Operating agreements. Then you need to get an EIN and a business bank account. At least pay for the 1st set and then copy and paste if they are essentially the same minus the LLC name difference. This is what would typically be done but their are variations to this.

If a tenant is in a house owned by an LLC then normally they can only sue that LLC and what it owns. This is as long as you are operating the LLC correctly in the first place.

Lines of defense before creating an LLC:

1. Mortgage on property

2. Insurance on property

3. Possibly an umbrella policy

4. Treat your tenants fairly and take care of your properties.