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it is easy to transfer real estate from an individual to an LLC – just record some paperwork with the city and it’s done – as long as both parties in the transfer are related, the transfer is not considered a sale and therefore no re-assessment of tax basis is required
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Not to poke and prod you too much. I’m just curious about this… Did you run this by a lawyer to see actually how much extra shielding you get from this arrangement? Sorry if I sound like I’m coming across as questioning the validity of this (I’m not). I’m just trying to learn from some of you and really appreciate you sharing.
I’m really liability adverse. It’s one thing if you are just starting out and don’t have too much too lose. It’s another thing if you’ve worked hard up to this point and have *something* to lose (albeit that something might be small). It would suck if one end up buying investment properties that ultimately results in some lawsuit that suck up the rest of one’s assets (lawyer fees aren’t cheap, even if you don’t make it to court).
One of my concerns is that buying a condo say between $100k and cash flowing say $100/month $300/month might seem great, but the way i look at it, there is the other aspect of liability risk that could (in a remote possibility) detriment my other assets if I’m not careful. So I want to see what is out there to offer maximum protection, knowing that whatever precautions you take, it won’t be bulletproof. (Yes, I’m aware of the standard buy as much insurance and umbrella coverage as possible). Obviously, I will consulting a lawyer in the near future….BUT i just didn’t want to be completely clueless.
