Question: I recently inherited a small amount of money from my grandmother. I decided that I would use most of this money to buy investment homes at foreclosure sales.
I bought my first investment home at a foreclosure sale. I then formed a limited liability company, and I transferred the title to this investment home into the LLC to avoid personal liability.
In the next month, I plan on purchasing three more investment homes. Should I then transfer the title to these three investment homes into the already established LLC or should I have a separate LLC for each investment home?
Answer: You should have a separate single-asset LLC for each investment home. The reason is that, if one of the investment homes turns into a rotten apple, the other investment homes will not be affected. For example, if there is mold in one of the investment homes and the tenant and the tenant's family are injured by this mold, many insurance companies will not cover, or will severely restrict, mold claims.
The cost of forming an LLC is minimal in comparison to the potential liability, and after formation of the LLC, unlike corporations, there is generally no government involvement.
by Christopher Combs Combs Law Group Nov. 4, 2011 05:24 PM
Combs: Single-asset LLC will provide best protection
Reuters: Business News
National Commercial Real Estate News From CoStar Group
Latest stock market news from Wall Street - CNNMoney.com
- ► 2017 (81)
- ► 2016 (145)
- ► 2015 (146)
- ► 2014 (102)
- ► 2013 (395)
- ► 2012 (392)
- Banks Revising Foreclosure Procedures
- Warehouse sales are booming
- After-tax return could alter look of investment
- Scottsdale Quarter development could include apart...
- Details of refinancing eligibility trickling in
- Billionaires can avoid reporting gains on stocks
- Court: Trust-land proceeds can't be used to run de...
- Developer land returned to farming in Maricopa and...
- Phoenix Optima condo developer set for 3rd effort
- Phoenix area housing market slips a bit
- Benjamin Group restructures under a new name
- 'Floating' house by Taliesen-trained architect fet...
- Oil Hits $100 Per Barrel. It’s All About the Pipel...
- 74 downtown Phoenix condos purchased
- Project Rebuild holds promise for housing industry...
- Dick's Sporting Goods buys W. Valley warehouse
- Phoenix, CityNorth developer clash - USATODAY.com
- Phoenix-area foreclosures way down in October
- Developer aims to restart condo project
- Phoenix home-fraud lawsuit leads to indictment
- Ariz. high court may weigh Chandler site
- 34 years of keeping families in their homes
- France outraged over 'shocking' debt downgrade mis...
- Dallas developer to revive stalled Scottsdale cond...
- Wall Street safety net still is full of holes
- More Arizonans can refinance for underwater mortga...
- Fannie Mae loss widens, asks taxpayers for $7.8B
- Ellman out as Westgate manager
- Saguaro hotel promises to be bright spot on Civic ...
- Arizona seniors lost millions in annuity fees
- Global survey hints at uptick in worker unhappines...
- Apartment vacancy rate dips below 9% for 1st time ...
- Combs: Single-asset LLC will provide best protecti...
- Builders look back on bad year
- Reagor: Real-estate agents ask lenders key questio...
- Many seek advice from financial experts
- Banks in Arizona shift to short sales
- Freddie Mac seeks $6 billion in aid
- Phoenix-area bankruptcy filings drop
- SkySong apartment site, hotel expansion win OK fro...
- Vestar develops Las Vegas retail project
- Man's short sale spurs website to help others
- Fountain Hills CopperWynd resort reopens
- Chase, Wells Fargo drop plan to charge fee for deb...
- ▼ November (44)