All Forum Posts by: Andrew Vincent

I would recommend a dual LLC set up - one for operations and one for holding the property. This ensures that if you are ever litigated against, they will sue the operations LLC which holds no assets (because the operations LLC goes on public facing contracts). You may be able to avoid transfer taxes by the use a trust that flows to the LLC or by creating a hub and spoke LLC model. You will want to look into lender ramifications (if you have a loan on the property). Happy to chat in more detail if it would be helpful. I am a consulting attorney for Royal Legal Solutions and they help investors with the set up you are talking about frequently. They also have CPAs on staff to advise on tax structuring.

Thanks,

-Megan

I believe that the Transfer tax is what we are really trying to avoid thank you!

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I am a complete beginner for real estate investing, but I have lots of interest in starting my path to financial freedom. I current work with my Father who also wants to invest in real estate and we have thought of the Idea of using some of his own companies extra revenue to invest in real estate. We would want to start a separate company to do the real estate investing but we wanted to see what others have done to achieve this. We are looking to avoid paying fees and taxes on transferring money to the new company so would we need to make the new company a sub-company to the one we have? (the reason for the separate company is because his current one is a Physical therapy clinic and we don't want all the eggs in one basket should something happen) I understand that this is a mix of legal and accounting type stuff but I'm looking to get pointed in the right direction!

Thank you in advance for any answers, any and all advice is welcome!

1 Vote

All Forum Posts by: Andrew Vincent

Andrew Vincent has started 13 posts and replied 42 times.

Post: Using Business Revenue to invest in real estate

Post: Using Business Revenue to invest in real estate