5 Golden Rules Of LLC’s for Rental Properties with Nellie Akalp (Ep 68)

On this episode of the Rental Income Podcast, Nellie Akalp shares how investors can use an LLC to protect their assets, and the 5 Golden Rules of LLC’s

Show Notes:

How did you get started? Wanted to diversify my portfolio and had a friend that was already a real estate investor and really appeared to enjoy what he was doing and I thought I could bring my expertise and knowledge regarding setting up LLCs and have him manage my investments

Challenges and Hurdles of Investing in Commercial Real Estate:  Do your due diligence- go checkout the property and know who you are dealing with whether residential  or commercial real estate

Why setting up an LLC is so important: asset protection, separate liability protections, tax benefits ( more deductions and lower tax bracket), less paperwork, private, and ease of transfer

5 Golden Rules of an LLC (Limited Liability Corporation)

(1) Protects you against law suits so that no one can go after your personal assets if the lawsuit does not go in your favor and a judgement was filed in the case

(2) Make sure the deed to the property is signed over to the LLC and recorded in the county tax office

(3) Set up a separate LLC for each property especially if you are a new investor and if properties are in another state – there are exceptions so do your due diligence as LLC is set up in the state where property acquired

(4) Buy as much insurance as you need and can afford – comprehensive landlord policy

(5) Properly maintain your LLC – keep personal $$ separate no commingling – separate bank account for personal v/s LLC dealings

Note it is said that Delaware is the best state for LLCs best to have it in the state where you have property and do business

Contact Nellie:

Corp Net – Nellie’s company that can help you set up and maintain your LLC free Business Info Zone offers free monitoring and alerts to keep LLC compliant

(C) 2015 Rental Income Podcast/Piedmont Consulting, LLC