Should We Create An LLC For Our Real Estate Investments

This is a question that comes up a lot – even though it’s probably not the most important question. Your investment strategy is more impactful than a choice of a business entity. But how important is it for you to create an LLC for your real estate investments?

Nevertheless, an LLC can be a useful tool for some types of real estate investors and certain investments.

🔶 Should We Create An LLC For Our Real Estate Investments 🔶

What are the advantages when you create an LLC for your investments?

  1. A properly created and managed LLC can shield your other assets from liability and debts.
  2. It separates your personal and business affairs.
  3. It allows you to take on some debt that is either not personally guaranteed or not on your personal credit report.
  4. It facilitates simple and complex business arrangements.

What are some disadvantages when you create an LLC for your investments?

  1. Some lenders will not allow it.
  2. You are mostly limited to commercial loan products, which have higher fees and rates.
  3. There are costs to the state.
  4. You must manage it appropriately to keep the benefits.
  5. You are still liable for any personally guaranteed debts.
  6. There is some up-front work.
  7. What are some alternatives?

Corporations and S-Corporations for active income.

  1. Umbrella insurance and other insurance products.
  2. Partnership Agreements.
  3. A management entity instead of a title-holding entity.

Do you have questions for us? Interesting in working together? Do you have ideas for a future podcast episode? Email us today!

Need a Keynote Speaker, Panelist, Conference Session Moderator, or Podcast Guest? Real Estate Attorney / Broker Rory Gill or Jason Muth are available. Email Rory or Email Jason today!

We’re powered by the following sponsors:

NextHome Titletown Real Estate, Greater Boston’s progressive real estate brokerage. NextHome Titletown Real Estate is a wholly-owned franchise of NextHome, Inc., the fastest growing real estate franchise in the United States, with 600+ offices and 5,000+ NextHomies in 48 states since 2015.

UrbanVillage Legal, Massachusetts Real Estate Counsel serving savvy property owners, lenders and investors more at

The Real Estate Law Podcast is hosted by Jason Muth and Attorney / Broker Rory Gill.

This podcast and these show notes are not legal advice, but we hope you find both entertaining and informative.

Discover more entertaining and informative conversations about how and where the worlds of real estate and law intersect at

Subscribe to The Real Estate Law Podcast here: iTunes | Google Play | Spotify | Stitcher | TuneIn

You can follow our sponsors here:

NextHome Titletown Real Estate:

UrbanVillage Legal:

Check out some of our favorite Real Estate, Legal, and Investing podcasts:

Join Jason Muth and Attorney / Broker Rory Gill of NextHome Titletown and UrbanVillage Legal in Boston, Massachusetts for another episode of The Real Estate Law Podcast!

Connect With NextHome Titletown Real Estate!

If you're looking to buy or sell a property, connect with us today!

How Can We Help You?

We would love to hear from you! Please fill out this form and we will get in touch with you shortly.
    (check all that apply)
  • This field is for validation purposes and should be left unchanged.

Leave a Reply

Your email address will not be published. Required fields are marked *