248: Rookie Reply: Do You NEED an LLC for Rental Property?

Real Estate Rookie

BiggerPockets

How To, Education, Entrepreneurship, Investing, Business

4.7 • 1.8K Ratings

🗓️ 31 December 2022

⏱️ 32 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Do you need an LLC for rental property investing? Ask some investors, and they’ll hit back with a resounding “of course!” But ask another group of investors, and they’ll tell you “not at all!” This duality causes many rookie investors to become confused, not knowing when to protect their property with the limits that come with an LLC. So how are millionaire investors setting up their properties and partnerships? Or, more specifically, what are Ashley and Tony doing to protect themselves? Welcome back to this week’s Rookie Reply! We’ve got some great questions queued up for our cabin and campground co-hosts, Ashley and Tony, to answer! First, we take a question about what to ask a seller during a final walkthrough, and how talking to tenants may be worth the extra time. Then, we hint at when to ask a listing agent for financials on a commercial property, the great LLC vs. umbrella insurance debate, and finally how to buy an investment property when you’re strapped for cash! If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE). In This Episode We Cover What to do during a final property walkthrough and top questions to ask a seller before you close Estoppel agreements and using them to verify leases on tricky properties Rental property LLCs and when buying umbrella insurance makes more sense When to ask for financials on a commercial property and using them to vet a deal Stock portfolio loans and how to borrow against your assets to buy real estate Partnering up to purchase more property even when you have no cash And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent BiggerPockets Real Estate Rookie Facebook Group Real Estate Rookie YouTube channel Real Estate Rookie Podcast Connect with Ashley And Tony: Ashley's Instagram Ashley's BiggerPockets Profile Tony's Instagram Tony's BiggerPockets Profile Check the full show notes here: https://www.biggerpockets.com/blog/rookie-248 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	This is real estate rookie episode 248 that you have to kind of weigh the pros and cons of,
0:07.6	you know, the risks associated with keeping in your personal name versus the costs of doing it
0:12.0	under the LLC. And what you just said, I think, is one of the most, like, missed expenses on a
0:18.8	line item when people are analyzing a deal, especially it's your first deal. You are putting it
0:23.3	into an LLC. I don't see a lot of people accounting for those fees that you just said of
0:29.7	setting up an LLC that's going to enter your cash flow, maintaining the LLC. It's only $25
0:35.1	in New York State. 25? Every year for the annual filing fee. My name is Ashley Care and I am alive
0:41.7	with my co-host, Tony Robinson. And welcome to the real estate rookie podcast where every week,
0:46.9	twice a week we bring you the inspiration, motivation, and stories you need to hear.
0:50.6	To kickstart your investing journey and I want to start today's episode by shouting out Milkman
0:55.8	2333, Milkman left us a five-star review and Apple podcast and said, I owe everything to this podcast.
1:03.4	One an amazing show easy to listen to and I love when they give updates on themselves.
1:07.5	Started listening in May of 2020 and because of them, I have the courage to buy in November 2020,
1:13.1	January 21 and September 2021. Trust me and listen. Next up for me is partnership with
1:18.8	the silent partner. Thanks Tony and Ashley. I owe it all to you guys. Well, Milkman, we appreciate
1:24.4	that. And honestly, that's what we do when we do. We love hearing stories just like that. So
1:28.0	if you haven't yet left us a five-star or honest, I should say, waiting and review on whatever
1:32.2	platform it is you're listening to, do yourself a favor, do us a favor and leave them for us.
1:36.2	And that's why me and Tony are geeking out because tonight, and we are going to a meetup,
1:41.4	we are going to get to hear so many inspiring stories from rookie investors and just experience
1:47.2	investors or the motivation and excitement of somebody who's trying to get started in real estate
1:52.1	and attends this networking event. Yeah, it's so crazy. As much joy as I get from
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.