If you’re serious about your real estate investing business (and protecting your assets), it’s important that you hold your investments in a legal entity. What’s the best way to transfer rental properties into an LLC? That’s our first question on today’s Q&A Monday!
On today’s show, I’m answering three of your questions about putting investments into a legal entity, what to do with a unique investment type, and how to choose the landscaping on a rental property. Don’t miss this episode of Investing in Real Estate to hear my answers to your investing questions!
On this episode you’ll learn:
- How to move properties into a legal entity.
- Ideas for investing in a boarding house.
- What to do with a rental property landscape.
How to Move Properties Into a Legal Entity
First of all, it’s important to understand why rental properties should be held in a legal entity, such as an LLC. For liability reasons, most lawyers would suggest doing so. In the event of a lawsuit, investors should keep their business assets and personal assets separate. If you need to transfer your rentals into an LLC, I suggest hiring a lawyer to assist. This ensures the process is done correctly, and in most cases will only cost a few hundred dollars.
Ideas for Investing in a Boarding House
For those who are unfamiliar, a boarding house is a building or home where rooms are rented individually for any period of time. Although boarding houses are uncommon today, purchasing this type of structure can lead to interesting opportunities. If I had this opportunity, I would consider converting the building into a senior living home. There is high demand for this type of investment, and depending on local legislature, it can be very profitable! There are numerous tax incentives for this investment type, so that would be my first idea.
What to Do with a Rental Property Landscape
To implement a beautifully manicured front yard or a low maintenance wildflower meadow? Here are two things to consider: What is typical in the neighborhood? What would attract your target demographic? Think about what would allow you to add value to the property, and in turn increase rent.
Ask Me a Question at morrisinvest.com/clayton
morrisinvest.com/woven ← Try Woven Premium for 21 days for free!
Book a Call with Our Team
Download the free Financial Empowerment Bootcamp
Download the Freedom Cheat Sheet
Subscribe to Investing in Real Estate on iTunes
Find Your Financial Freedom Number
Subscribe to the Morris Invest YouTube channel
Like Morris Invest on Facebook
DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion. We recommend them because they are helpful and useful, not because of the small commissions we make if you decide to use their services. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.
Ready To Build Passive Income Through Rental Real Estate?
Ready to talk about your goals? We're here to show you the tools and teach you the process to begin earning legacy wealth for you and your family.
Doesn’t transferring to an LLC typically trigger the due on sale clause?
Rich Dad attorney Garrett Sutton says no. Check out this interview: https://morrisinvest.com/podcast/2017/8/15/ep197-the-legal-loopholes-of-real-estate-investing-interview-with-garrett-sutton/