All Forum Posts by: John Trout

Thanks for the warm welcome everyone!
I look forward to learning and networking with you all.

@ Philip LaRoche

Good point, I guess it really depends on the buyers funding source. If they are using their own money or private money to invest in the property then I can see where buying the LLC would have financial benefits. However, I imagine many investors would not fall under that category and we would end up with a more traditional transaction, (including closing etc) which would make forming the LLC of little or no benefit.

However since I am looking to partner with passive investors, it may still be worthwhile to form an LLC for each investment as a way of legally protecting both partners and for ease of funds distribution.

Has anyone else Purchased or Sold a property that was held in an LLC?

Hi @Seth Williams - That is a very cool method to use as a substitute to assigning a contract. Gets you out of personally going to closing also LOL. Very clean.

I am seriously considering buying my next property as an LLC (Property Address LLC), rehabbing it, finding tenants and then offering to sell the LLC to another investor as a turn-key REI.

I am looking for advice on pros and cons. As you mentioned, one of the pros would be saving on recording/closing costs, transfer taxes and perhaps real estate commission as well.

However, if the buying investor needed to finance the purchase through a lender, would buying the LLC as opposed to buying the property in a traditional sense cause any problems?

I was once told an interesting "trick" by a seasoned RE Investor. He said if you could find an investment property (say a SFH rental property) that was owned by an LLC, that you could save lots of money on the purchase of the property by simply "Buying the LLC" instead of the property.

I was wondering if anyone hear has ever done this and what other advantages / disadvantages there would be in purchasing a property by purchasing the LLC?

Hi BP Community!

Several years ago I took some REI classes and joined a REI group in Baltimore, Maryland. I partnered up with another member who had some money and together we rehabbed / flipped a couple of houses in Columbia, Maryland. I did 90% of the repairs and rehab while he supplied the money and helped as much as he could (he was legally blind and a bit older than me). We did pretty good until the housing market crashed and then we decided to take a wait and see approach. I have since relocated to Pennsylvania and I am ready to get back into REI. Plan to start looking for financial partners who don't want an active role in the actual rehabs, just want to invest in RE projects.

BP looks like a great site and I look forward to networking with like minded people.