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TIPS FROM AN ATTORNEY TO PROTECT YOURSELF — AND YOUR INVESTMENT.
When it comes to your real estate investing business, asking questions is part of the job. Think Realty Resident Expert, real estate financial advisor, and attorney Clint Coons offers his advice to questions he hears from clients every day.
Q: Is using Anonymity in real estate investing mainly for people with large real estate property or should newbie investors start with this set up from the beginning? This set up sounds pricey and difficult to start for a newbie investor.
A: What you should consider is do you value the benefit of anonymity? If you see its benefit, then this is the foundation of all your planning. If you later decide you do not want your tenants knowing where you live, what you own, etc. then you should set it up. If you don’t see yourself ever wanting this type of protection, then you would not need it. However, there are many other reasons beyond anonymity to use a holding LLC; e.g., tax return consolidation, charging order protection, and increased borrowing power.
Have a legal, finance, or tax question that might affect your REI? Send questions to Think Realty’s editor at kwhite@thinkrealty.com.
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