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Updated about 1 year ago on . Most recent reply

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109
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Pierre E.
  • Washington, DC
37
Votes |
109
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Flipping Property Inside of Property Management Company

Pierre E.
  • Washington, DC
Posted

If I have a property management company that manages all my rentals, and a separate holding company that holds all my buy and hold properties as my main form of investing, if I find a property that I want to purchase and either eventually decide to flip, or know I want to flip it from the beginning, are there any things I should consider in doing it within my property management company LLC or should I have a separate LLC for flipping properties?

The idea is flipping or assigning properties that I come across that might not fit my buy and hold buy box estimating 1-4  a year. 

Once I know I want to keep a property I am assuming keeping it inside my holding company is what would make the most sense. Just not sure about flipping.  Thanks in advance for your thoughts and ideas.  My goal is not actual legal advice just general things to consider.                                                                                                                                          

  • Pierre E.
  • Most Popular Reply

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    Michael Smythe
    #2 Managing Your Property Contributor
    • Property Manager
    • Metro Detroit
    2,632
    Votes |
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    Michael Smythe
    #2 Managing Your Property Contributor
    • Property Manager
    • Metro Detroit
    Replied

    Put each flip in its own LLC.

    You could do them all in a single LLC for all your flips, but then you're stacking liability for all previous transactions in the same LLC, exposing whatever that LLC holds at the time of a lawsuit.

    Lawsuits could come from buyers, contractors, lenders, etc.

    • Michael Smythe
    business profile image
    Logical Property Management

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