When it comes to setting up an LLC for real estate investing, there are a few different methods you can use. There’s the traditional model as well as Series LLCs. How can you determine what’s right for you? That’s the first question I’m answering on today’s Q&A episode!
On this episode of Investing in Real Estate, I’m taking three of your thoughtful questions on LLC structure options, how our company can help you with your entity set up, and ideas for building on a plot of land. Please join me for episode 767!
Considerations for LLC Set Up Methods
For real estate investors, there are two main LLC methods: the traditional hub and spoke model and Series LLCs. Personally, we have always used the traditional method and it would be too messy at this point for us to change our structure.
I won’t pretend to be an expert on Series LLCs, but my friend Scott Smith is! Here is an episode where Scott shares the finer details on Series LLCs, how they work, and why you might want to consider this structure. In that interview, Scott also explains why certain states are better for LLC setup.
Ultimately, your best bet is to seek advice from an attorney who can help you determine what works best for your unique situation.
How Morris Invest Can Help with Your Legal Entities
Our team of portfolio managers are not lawyers, but we can certainly help direct our clients to the right channels to set up legal entities. However, consider that an LLC is not the right move in every situation. For example, if you’re using conventional financing you’ll need to buy the property in your name (and can transfer to an LLC at a later date). Our team of experts can help guide you through the process. I’d suggest booking a call here so we can see what will work for you.
What to Do with Land Next to a School
Building on a plot of land next to a school sounds like a smart idea, especially if it’s a great school district. I’d first look into the school district, and then check with the city for any restrictions. I’d also suggest reaching out to local builders to see what they think the best use of the land is.
There’s a lot to consider in this situation. While building next to a school might be a positive, it also might not be! Schools go hand-in-hand with lots of traffic and noise — imagine all the hustle and bustle of a Friday night football game. Make sure you weigh all your options before proceeding.
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Here’s What You Should Know About Series LLCs with Scott Smith – Episode 746
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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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