Setting up a real estate management company

[Brian Willie]

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!

[Gino Barbaro]

@Brian Willie

I would contact an entity attorney. At Jake & Gino, we use Barth Calderon, and they can help you set up your structure. The real answer is It depends, without more info.

It is well worth getting things set up on the front end. If you want an intro to Paul at Barth, DM me.

Gino

[Michael Smythe]

@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.

[Carl Stenberg]

@Brian Willie in case helpful, I made a post about this a few weeks ago: https://www.biggerpockets.com/forums/109/topics/1197194-llc-...