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
120,141
Chris Hill
Your Southern Maryland Real Estate Professional
Century 21 New Millennium

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.

August 25, 2010 03:48 PM
Rainmaker
1,751,268
Gita Bantwal
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
RE/MAX Centre Realtors

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

August 25, 2010 03:50 PM
Rainer
64,782
Stephen Sainte-Martin
Realty Direct Boston

Chris:

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

Stephen

August 25, 2010 03:51 PM
Rainer
64,782
Stephen Sainte-Martin
Realty Direct Boston

Gita:

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

Stephen

August 25, 2010 03:53 PM
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Stephen Sainte-Martin

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Additional Information

This is a blog for folks who realize that perhaps there was another way of doing their deals. It is a retrospective examination, and for those who realize that hindsight is 20/20.