All Forum Posts by: Paul Ellerbusch

@Mark S. Well, "a lot" of work is relative.

The benefit is the ability to use my LLC for protection in a rental arbitrage scenario.

So imho, using the LLC and bank account that I have already setup to collect and make payments in return for an established entity is pretty easy decision.

@Joe E. @Corina Eufinger @Natalie Kolodij @Mark S. @Carl Fischer @Christopher Smith @Wayne Brooks  @Sean Morrison I spoke with an attorney and he echoed what was said on this post, if the LLC doesn't own the property, there is no added protection. With that being said, I am going to continue with my plan of renting my property to my LLC and then re-renting to tenants (lease is between LLC and tenants). By doing this I will be building the payment/credit history of my LLC. I plan on exploring a rental arbitrage model later down the road so having an established LLC will come in handy for that.

Thank you all for the responses!

I am a new real estate investor and I am closing on my first duplex in Milwaukee, WI this month. I took out a conventional mortgage (30yr/3.125%) and the property is will be held in my own name. I am trying to incorporate an LLC into my real estate investing activities to provide added protection. I plan on using a buy and hold strategy for my first duplex.

So, if I use my LLC as an operating company but keep the property in my own name, does the LLC provide any personal protection? I plan on renting the property to tenants through the operating, LLC (my name will not appear on the lease contract). Also, I will pay for repairs and all other expenses, and funnel rent payments through the LLC bank account as to not co-mingle funds.

I have read in-depth about using holding companies, multiple LLCs, trusts, crazy expensive liability insurance policies, etc. but wanted to explore this route because it seems less-complex and more cost efficient. Basically my question is ... if one of my tenants slips and falls and sues, will they be suing the operating LLC (listed on the lease) or can the tenant skip over the LLC and come for me, the property owner, and my personal assets?

Thanks in advance!