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Investing in Real Estate with Clayton Morris | Investing for Beginners

726: Do I Need an LLC for Real Estate Investing? - Episode 726

Investing in Real Estate with Clayton Morris | Investing for Beginners

Clayton Morris

Business News, News, How To, Business, Education, Investing

4.11.1K Ratings

🗓️ 1 April 2021

⏱️ 5 minutes

🧾️ Download transcript

Summary

Should you put your rental properties in an LLC? This is one of the most common questions my team is asked during our first phone call with new clients. The quick answer is: it depends.

On today's show, we're going to dive into the complexities of setting up a legal entity for real estate investing. You'll learn why your legal structure depends on your financing, the importance of seeking legal advice, and why a cookie-cutter approach to investing is unhelpful.

Transcript

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0:00.0

Welcome to the real estate investing channel. I'm Clayton Morris so glad to have you here.

0:09.2

I'm the founder of Morris Invest, which is a full-service rental real estate company.

0:13.0

I've done thousands of deals.

0:14.4

And one of the most frequent questions

0:17.5

that we get around the office is,

0:19.5

should I put my rental property in an LLC.

0:23.6

And this is one of the most common questions

0:26.4

my team is asked during our first phone call

0:28.9

with new clients.

0:29.8

And here's a quick answer for you. It depends.

0:33.0

I know that's probably not the answer you want,

0:35.0

but it depends.

0:36.0

And we'll get to some of the details here in a second.

0:38.0

And first, let me just say, look, I am not an attorney,

0:41.0

I'm not a CPA, and so this is my opinion on the process you seek your own advice

0:46.0

your own attorneys and your own legal team etc and your own accountants etc but generally

0:51.8

speaking it's recommended to buy real estate in an LLC and in my opinion that's how I've always done it.

0:58.0

You may have heard me say this before but just remember it's just a general piece of advice,

1:03.0

especially if you're a DIY investor.

1:05.4

You'll want to set up an LLC for liability purposes.

1:08.2

And there could be multiple benefits

1:09.6

to buying real estate within an LLC,

...

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