LLC

[Gabriel Reff]

Did you have your LLC before your first deal was done?

[Edward B.]

I did not. I still have some properties in LLCs and some in my name. It really boils down to your risk tolerance. Much like insurance, an LLC will afford you peace of mind because it gives you more protection if established and run correctly. Will you need that protection, probably not, but your house probably won't burn down either and I am sure you are insured for that. Personally, I am a fan of the protection an LLC offers. I also believe that if you are running a business you should do it in a business entity. There are other benefits to having an LLC in terms of credit, credibility, etc.

An LLC does complicate matters though. Financing is different and you must look harder for it. Transferring properties after the fact likely violates the terms of your residential mortgage. They do cost money to set up and maintain, especially to do it right. If you don't do it right, you probably won't get the benefits that you were hoping to from it.