Do you need an LLC for rental property investing? Ask some investors, and they’ll hit back with a resounding “of course!” But ask another group of investors, and they’ll tell you “not at all!” This duality causes many rookie investors to become confused, not knowing when to protect their property with the limits that come with an LLC. So how are millionaire investors setting up their properties and partnerships? Or, more specifically, what are Ashley and Tony doing to protect themselves?
Welcome back to this week’s Rookie Reply! We’ve got some great questions queued up for our cabin and campground co-hosts, Ashley and Tony, to answer! First, we take a question about what to ask a seller during a final walkthrough, and how talking to tenants may be worth the extra time. Then, we hint at when to ask a listing agent for financials on a commercial property, the great LLC vs. umbrella insurance debate, and finally how to buy an investment property when you’re strapped for cash!
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).
This is Real Estate Rookie, episode 248.
But you have to weigh the pros and cons of the risks associated with keeping it in your personal name versus the cost of doing it under the LLC.
And what you just said, I think is one of the most missed expenses on a line item, when people are analyzing a deal, especially it’s your first deal, you are putting it into an LLC. I don’t see a lot of people accounting for those fees that you just said of setting up an LLC, that’s going to enter your cash flow. Maintaining the LLC, it’s only $25 in New York City.
Every year for the annual filing fee.
My name is Ashley Kehr and I am on live with my co-host Tony Robinson.
And welcome to the Real Estate Rookie Podcast, where every week, twice a week, we’re bringing you the…