All Forum Posts by: Cory Elder

@Richelle T. Can you elaborate a bit more on the equity stripping concept? I've never heard of that before. I did a quick google search on it. Let me see if I understand this correctly with a simple example: 

I have a single member LLC ("ME, LLC") which purchases a property for $100. ME, LLC gets a loan from the bank for $80. Instead of putting $20 down on the property from ME, LLC to pay for it completely, I create another single member LLC ("CORY, LLC") which I also own 100% of and loan the $20 to ME, LLC so that the property is now owned by ME, LLC but 100% financed ( 80% by the bank and 20% by CORY, LLC). Thus, making it less attractive since the equity interest in the property is reduced.

Is this accurate? Sorry for the oversimplified example, but it's easier for me to process in simple terms.

If this is accurate. what if the tenant places my personal name on the lawsuit? I own both LLCs in this case so that would put my equity interest right back where it would have been without this scenario so how does that add protection? Does it just make things more complex so maybe the other party won't discover it?

Thank you all for your input and guidance. It's really helpful. Great content. Definitely appreciate it.

Hi all,

I live in Indiana. I've got enough money saved up to purchase my first investment property. I'm looking at a simple single family home or possibly a duplex (it would be a buy and hold strategy so basically renting it out). I'd like to have at least two properties by midyear 2015 and continue with that pattern for a few years until I'm able to own a full-on apartment complex.

I've seen different opinions and suggestions regarding whether one should own their property in an LLC or simply in a land trust. Would you advise I simply put the properties in an LLC or utilize a land trust as well? I plan to form an LLC regardless. What would be the benefits and/or disadvantages or having one, the other, or both?

Thanks in advance!!