Re: Transferring properties to LLC. - Posted by phil fernandez
Posted by phil fernandez on December 18, 1999 at 12:13:26:
You can put as many properties as you would like into a single LLC. One of the resons I created a bunch of them, is so I could put each individual property that I own into it’s own LLC. The reasoning behind this is to spread out your exposure to lawsuits.
Example : If a tenant who lives in a property that’;s in LLC 1 decides to sue. They cannot sue me personally because I do not own the property. LLC 1 owns it. They can sue LLC 1 , but not LLC 2, LLC 3, LLC 4 or LLC 15. These other LLC’s have nothing to do with either LLC 1 or it’s property that LLC 1 holds. You are spreading your risks.
In my state it costs money to set up the LLC’s , I used a lawyer, the recording fees for the property transfer into each LLC, and a $15/ year fee per LLC. If you have 15 properties in 15 sepearte LLC’s it can get quite expensive. To limit the amount of LLC’s you could put 2 or 3 of your low equity properties in a single LLC. If that particular LLC gets sued, there would not be much equity to go after.
Bill Bronchick has some excellent courses on LLC’s and protecting your assets that can be ordered from this site.