Be pro active.

Hi guys, I have some questions about putting property into LLCs/protecting assets, any information is greatly appreciated: Question 1: my understanding is that an LLC needs to be actively conducting business in its registered state in order for the LLC protections to apply, otherwise a judge could potentially pierce the corporate veil.

Purchasing the LLC gives you ownership of the property, but it also opens you up to additional legal exposure since the entity has been active, and there is no way to really know for sure what else they used the LLC for.

There is a storage deal that is actively being raised for over there that you can practice analysis on.

I will be keeping in touch as I become more active here.

Paying off rental mortgages increases monthly cash flow but reduces liquidity, while investing in hard money lending offers high returns but is taxed as ordinary income.Buying a multi-unit rental provides tax benefits like depreciation, while purchasing a business can yield strong profits but requires active management.

It gives them a reinvestment option to complete the exchange and doesn't require active management.

Is this post even active anymore, 7 years old?

If you are a REP, then it will deduct from active earnings.

If you invest in RE, whether active or passive(management team, syndications, crowdfunding), I'd love the chance to quickly explain the structure and hear your thoughts on what might need to be improved.