Should I set up an LLC for each Property that I Purchase?

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Real Estate Agent with Realty Direct Boston

What I think is that, this depends on your level of comfort with chance and probability. The more properties you hold in a single entity the more you risk your income being affected in a law suit. If you hold, for example say five properties in a single LLC , and that entity is sued in court by a tenant in property number three. All of the assets in the Single LLC could be affected negatively. Most people I presume would prefer to have one property per LLC, thus limiting the exposure to any single claim. 

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Rainmaker
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Chris Hill
Century 21 New Millennium - California, MD
Your Southern Maryland Real Estate Professional

OK, so here's my 2 cents. #1 I AM NOT AN ATTORNEY!!! My personal opinion is that the more LLC's you have is probably better. I would definitely consult an attorney to determine your liability.

Aug 25, 2010 03:48 PM #1
Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for the tip. If someone already owns a property can they set up LLC ?

Aug 25, 2010 03:50 PM #2
Rainer
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Stephen Sainte-Martin
Realty Direct Boston - Boston, MA

Chris:

Thanks for releasing yourself from liability, but I agree with you.

Stephen

Aug 25, 2010 03:51 PM #3
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Stephen Sainte-Martin
Realty Direct Boston - Boston, MA

Gita:

Yes they can, but like Chris said, I am not an Attorney.

Stephen

Aug 25, 2010 03:53 PM #4
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Rainer
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Stephen Sainte-Martin

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