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.
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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.
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