Do you need an LLC for Your Real Estate Investing

Do you need an LLC for Your Real Estate Investing - (NEW!)

Рет қаралды 10,043

Clint Coons Esq. | Real Estate Asset Protection

3 жыл бұрын

Why do you need to set up an LLC when you can buy insurance which is cheaper and easier? Using limited liability companies for your real estate investing is going to protect you from risks your insurance will not.
In 10 minutes I'll show you:
How insurance doesn't cover all the risks real estate investors face.
Why you need to look at real estate investing as a business including tax planning and business planning.
Your insurance has an exclusion in your policy that states it will not protect you when there's an environmental contaminant, which toxic mold would fall under.
Many policies do not cover certain damages that happen to individuals on the property if the property is vacant for more than 30 days.
What you need to know when it comes to forming LLCs for real estate investing is covered in this short video.
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ABOUT CLINT COONS
Clint Coons, Esq. is one of the founding partners of Anderson Law Group, Clint has grown his legal and tax firm to over 400 employees by assisting real estate investors with creating and implementing solid entity structuring plans. His success in these regards is in large part due to his personal investing experience. A successful attorney, real estate investor, and speaker, Clint has used his innovative and dynamic strategies coupled with knowledge borne from experience to help thousands of people save millions of dollars and build real wealth.
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
#realestateinvesting

Пікірлер: 55

@CDReimer 3 жыл бұрын

A roommate and I rented out a duplex when a little old lady told us that the dead petunias in our front yard reduced the value of her house by $25,000. I asked her if she was selling her house. She said no. I asked how she knows that the value of her house has dropped in value without an appraisal. She walked away in a huff. That's a telltale sign when California real estate is overheating.

@LMays-cu2hp 3 жыл бұрын

Thank you for your advice.

@ClintCoons 3 жыл бұрын

Glad it was helpful!

@LMays-cu2hp 3 жыл бұрын

Yes, please continue to advise and educate because it is very helpful.

@kianzasmommy11 3 жыл бұрын

Very helpful information (from a very attractive man). Thought I’d already subscribed to your channel but apparently I hadn’t. I did just now, though. Thanks for all the time you give to make these videos and share with us. Awesome man for that!

@ClintCoons 3 жыл бұрын

Welcome aboard! Thanks for subscribing.

@josephnox1759 3 жыл бұрын

You're the best bro 🤙🏼

@deidreprozinski2759 3 жыл бұрын

This was a great summary of why you’d use an LLC to own property, but what about a separate LLC for multiple properties? Why is that recommended? Outside of financing/loan qualifying issues.. Perhaps you have a video on that already? Such a great source of info! Thank you.

@ClintCoons 3 жыл бұрын

I do. Here it is: kzfaq.info/get/bejne/ibiYg7ClrdCmZ4E.html

@deidreprozinski2759 3 жыл бұрын

@@ClintCoons Thank you!

@cherylm2C6671 3 жыл бұрын

No free lunch anywhere! But legal services by subscription costs are a stable expense. A property that 'churns' through fixits indicates use of the landlord to provision illicit gain.

@nicksaylor3288 Жыл бұрын

Could you group a handful of properties in one LLC and have a umbrella policy so it cheaper than each property in a LLC?

@ClintCoons Жыл бұрын

You can use separate LLCs and still get an umbrella policy. Check out National Real Estate Insurance Group or Chubb.

@empresslocs42 2 жыл бұрын

Why do you have to do a schedule C when having an LLC?

@ClintCoons 2 жыл бұрын

If your LLC is conducting an active business, you materially participate in that business, and the LLC is treated as a partnership or disregarded entity for tax purposes - then the income will hit your 1040 schedule C or SE.

@dellki52 3 жыл бұрын

Ok what if I rent a property from a company for my company? The question is how do I add this property to my LLC as my business 🤔..and not place this property in my personal name?

@ClintCoons 3 жыл бұрын

I hope I understand your question. You wont place it in your LLC because you are renting. Your LLC could be the lessee on the rental agreement but you cant title the property in your LLC because it is owned by the lessor.

@dellki52 3 жыл бұрын

@@ClintCoons Yes this is exactly what I needed

@adewale3531 3 жыл бұрын

Hi, can you discuss how LLC helps me as a resident in Canada, to be able to invest in real estate both in Canada and US.

@ClintCoons 3 жыл бұрын

If you are Canadian and investing in the US then you would use a limited partnership in lieu of an LLC. Canadians are subject to double taxation when using LLC to hold US real estate.

@elizabethharvey150 3 жыл бұрын

I feel like this video was missing a lot of information. What about owning with business trusts? Is it appropriate for a single owner? California charges extra fees for LLCs, is there a better way?

@ClintCoons 3 жыл бұрын

Elizabeth you are correct and thanks for your comment. There are several different methods to structure your real estate investments based on the type of assets, where the property is located, where you live (e.g., CA), the debt on the asset, etc.. Planning is not a one size fits all approach. The video's purpose is to raise awareness of the issues and how to go about protecting your assets; however, you should always consider a strategy session to determine what is most appropriate for your situation. If you would like a FREE 30-minute consultation, you can request one here - aba.link/30minSession

@Davion_savant Жыл бұрын

Hello Clint , so as for before signing the purchase contract , is there any specific or type of insurance for llc that protects in the due diligence and negotiations stages of such things like negligence , errors , or any potential malicious claims that may possible arise from a seller ?

@ClintCoons Жыл бұрын

I am not aware of any - very hard risk to insure against. Not sure how a carrier would underwrite the policy. Title insurance protects you against defects so you receive what you are paying for.

@Davion_savant Жыл бұрын

@@ClintCoons thank you I appreciate your response

@chenterios5099 3 жыл бұрын

How would I go about rent my home back to myself? C- Corp?

@ClintCoons 3 жыл бұрын

The question is why would you want to do this?

@chenterios5099 3 жыл бұрын

Sorry for the late response. I'm really just trying to increase my tax deduction so I can bring down my home loan, so I can get a HELOC on it, then leverage that for a true rental property. FYI, I have been watching your videos for over 2 years now. Very informative.

@starr8111 3 жыл бұрын

What about using umbrella llc

@ClintCoons 3 жыл бұрын

Definitely should have one.

@conversationguru1886 3 жыл бұрын

@@ClintCoons so should we only use an umbrella insurance policy or get a LLC for each property?

@ClintCoons 3 жыл бұрын

@@conversationguru1886 Both. I have LLCs and a personal umbrella policy.

@dezm1844 3 жыл бұрын

So only one LLC isn’t sufficient?

@ClintCoons 3 жыл бұрын

Not really. You should put each property in a separate LLC.

@jefffrazier6046 3 жыл бұрын

I know you said an Wyoming llc can be trusstee of multiple properties but. is it better to have a llc for each property

@ClintCoons 3 жыл бұрын

Yes. I have several other videos on setting up one LLC per property. Thanks for watching.

@jefffrazier6046 3 жыл бұрын

@@ClintCoons Thanks for sharing

@jefffrazier6046 3 жыл бұрын

Should the local llc/wyoming llc be the trustee of the trust or the beneficiary? and how would you sell the property in this situation

@ClintCoons 3 жыл бұрын

You would have 2 WY LLCs in this example. One would be the holding LLC that owns your real estate LLCs and the other will serve as your Trustee.

@jefffrazier6046 3 жыл бұрын

Is it possible to speak with you

@bibs1870 3 жыл бұрын

Is it advantageous (or even possible) to put a current real estate investment into an LLC if I’ve owned the home already for years?

@ClintCoons 3 жыл бұрын

Yes. This is exactly what investors do with their rentals. Unless you are planning to sell within the next few months, moving the property into the LLC is sound planning.

@bibs1870 3 жыл бұрын

Real Estate Asset Protection Ok thanks for that. Does that mean I’d have to sell it to the LLC? This would mean I’d need to pay closing costs, etc, correct? Can those costs during that process be avoided?

@ClintCoons 3 жыл бұрын

@@bibs1870 It would not make sense at this point because you will pay tax on the gain. Better off just deeding it to the LLC or a land trust depending on your state and transfer taxes.

@ashburnconnecttv7860 3 жыл бұрын

Would someone who is Wholesaling need an LLC?

@ClintCoons 3 жыл бұрын

An LLC or a corporation - Yes.

@CryptoGod79 3 жыл бұрын

Are you saying that each property that you own should be in its own LLC?

@cherylm2C6671 3 жыл бұрын

I have heard that too - it confines ambulance chasers to the assets of the one LLC instead of exposing other properties in the holding to the les pendens.

@glenmatthes8839 3 жыл бұрын

That's exactly what he's saying. There are many other videos on this channel explaining why that's the case.

@CryptoGod79 3 жыл бұрын

@@glenmatthes8839 hummm interesting 🤔

@CryptoGod79 3 жыл бұрын

@Kevin Dales thx Kevin