LLC, LP, C or S Corp - Posted by Michael NJ

Posted by David on November 22, 2000 at 18:47:00:

Your lender is more or less correct. You might be able to take title in your LLC/Corp name, but probably you will personally have to take on the note. Further, if you don’t keep clean distinctions between your LLC/Corp, the theory of “alter ego” - that your Corp is just you under another name - might eliminate any protection you think you had anyway. Liability insurance can give you ample protection without putting properties in a LLC/Corp.

LLC/Corp is good for formalizing working agreements between 2 or more people at arms-length. You might not find it a benefit for properties (rentals, I presume) you hold for yourself.

LLC, LP, C or S Corp - Posted by Michael NJ

Posted by Michael NJ on November 22, 2000 at 15:16:40:


I’m in the process of buying my first major REI property. I want to form the best entity for this rental property. Of the advice I’ve gotten from a Lender was that I should buy the property as an individual because nobody would give me a mortgage as a company or Corp. I plan to buy many properties and I look at the REI’s as my business. Any advice or help is deeply appreciated.

Thank you