Setting up a real estate management company
Looking for a little advice on the best type of company setup to manage a real estate portfolio. Not looking to be a property manager or PM company just put in place a separate company that manages the LLCs that hold the real estate.
I'm guessing the management company would collect all rents, pay expenses etc and the individual LLC would just own the real estate. Would the management company be stand alone? I'm guessing it wouldn't own the other LLCs that hold the assets? Thanks!
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#3 Classifieds Contributor
- Real Estate Agent
- Metro Detroit
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#3 Classifieds Contributor
- Real Estate Agent
- Metro Detroit
@Brian Willie this setup is very common to avoid having each Property LLC to have its own bank accounts.
Only the Management LLC will need Operating and Security Deposit accounts.
They all need to be single-member LLCs with the same owner, or else it gets very complicated.
Find a good tax attorney to help set this up.
- Michael Smythe
