LLCs are companies that allow individuals (or a group of people or even corporations) to own a company that ultimately owns other property — in our case, real estate. But the biggest issue you might have with an LLC is that lenders will consider your real estate ownership as an investment property.

Can an LLC accept investment?

Your LLC may be able to attract investment from wealthy individuals, investment groups, or in rare cases, venture capitalists. These savvy investors will expect you to have a solid business plan and project an image as someone who can successfully run the business and provide them with a return on their investment.

Which is better investment property LLC or LLC?

Real estate investors have found that investment property LLCs are the most beneficial when overseeing various properties due to the limited liability, increased flexibility, simple formation, and tax benefits. With that said, you should be mindful that an LLC might not be the best choice for all real estate investors.

Do you need a LLC for each property?

I’m often asked if real estate investors need to create a separate Limited Liability Company (LLC) for each investment property they own, or if one LLC can cover them all. My answer is typically yes — create an LLC for each property. In fact, many investors and builders name each LLC after the address of the property, i.e. “123 Main Street, LLC.”

Where can I get help forming an Investment Property LLC?

If you need help forming your investment property LLC, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site.

Can a LLC be named after a property?

My answer is typically yes — create an LLC for each property. In fact, many investors and builders name each LLC after the address of the property, i.e. “123 Main Street, LLC.” This practice will give you the greatest amount of liability protection for your real estate investments.