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Buying as a Business vs. Personal


               
2013 Mar 18, 8:43am   3,987 views  11 comments

by OnTheFence   follow (0)  

Hi,

I've been looking at multi-family homes for a few years now, never too serious. Curious how many folks purchase multi-family homes as a business owner vs. as an individual.

What makes you choose to do one over the other?

What are some of the advantages one has over the other?

Thanks for your reply in advance.

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1   OnTheFence   @   2013 Mar 19, 1:49pm  

I've looked into forming an S-Corp vs. LLC and LLC seems to be the way to go.

Is anyone buying their investment properties through an LLC?

If the opportunity is as a owner occupied multi-family, can you still purchase it under the LLC?

Thanks.

2   REpro   @   2013 Mar 19, 2:49pm  

OnTheFence says

owner occupied multi-family

You mean up to 4 units only.
LLC is for your liability protection, but much more difficult to get financing.

3   gbenson   @   2013 Mar 19, 4:23pm  

Thing is with an LLC is that if its just you and your spouse it really doesn't offer any protection. Any lawyer capable of passing the bar will be able to pierce the LLC and go after personal assets. Yeah, they have to do a bit more work, but not enough to deter them if you do have any worthwhile personal assets. Stick cousin Louie or someone else in there with a small stake in the LLC though and that makes it harder to pierce.

For us was cheaper to just get a good umbrella policy and seemed to offer adequate protections, and as previous poster said, makes financing a whole lot easier not being a LLC.

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