First Real Estate Investments: Benefits of Forming an LLC or Direct Ownership
Conundrum: I'm wondering what the benefits are from both a risk-management and cash flow (tax) perspective of organizing an LLC to make my first few property investments, versus owning the houses in my name. I am about a year away from the process of actually putting down money and feel like an LLC would protect me from lawsuits/financial risk and potentially provide tax benefits, but there must be drawbacks of not having direct ownership. Anyone have any experience with this or know of another user on here that I could chat with?
I will probably have about 1 - 1.5 million dollars of straight cash to work with.
I'm looking at town-homes in primary/secondary US Markets in the Mid-Atlantic.
The idea is to steadily acquire more and more cash-producing assets, I'm not trying to "flip" houses.
Aside from the money I'm pooling to make these investments, I do not have much personal wealth built up. I have respectable savings but not enough to buffer me from bankruptcy if everything goes straight to hell in a hand-basket.