Rental properties linked to two LLC's; Wise decision?

I've been researching forming an LLC(s) for the purpose of renting multi-units. I haven't yet decided between a mobile home park or apartments. I saw on another Real Estate blog that the members formed two LLC's. ABC, LLC (formed in one county but operates in a different county) is the name of the

I've been researching forming an LLC(s) for the purpose of renting multi-units. I haven't yet decided between a mobile home park or apartments. I saw on another Real Estate blog that the members formed two LLC's. ABC, LLC (formed in one county but operates in a different county) is the name of the apartments. ABC, LLC doesn't show in any public land records in county/city. The land records do show DEF, LLC as the owner of the land/apartments of ABC, LLC. If you enter ABC, LLC searching for information about the property; you get NO results. However, if you enter DEF, LLC searching for information about the property; you get the entire land description of ABC, LLC. I asked why it was done that way but I haven't gotten a response yet. The blog was done years ago so they may not even check it anymore.
Still researchingI see that this may be done to prevent liability if ABC, LLC is sued. DEF, LLC could be considered a "holding" company for ABC, LLC. ABC, LLC may be considered as not having any assets because DEF, LLC has the apartments/land registered under it's name. Could explain why ABC,

Still researchingI see that this may be done to prevent liability if ABC, LLC is sued. DEF, LLC could be considered a "holding" company for ABC, LLC. ABC, LLC may be considered as not having any assets because DEF, LLC has the apartments/land registered under it's name. Could explain why ABC, LLC was formed in one county; but operating in another county while DEF, LLC was formed in the county that ABC, LLC operates in and registered as owner of the entire property.

Best Answer:

Patricia: Seems like a waste of time and money to me.

Other answer:

Patricia:
You don't need two separate LLCs, all you are doing really is having an LLC own the property back operate with a trade name. As such, just pick a name for the apartment complex, register the trade name and you are good to go.

Get a lawyer; researching this on a blog is the equivalent of representing yourself in front of the court…you have a fool for a client.

Eva:
Unnecessary. Doesn't provide any more protection than a single LLC.
FAHq:
if you buy rental property you need insurance anyway……all an LLC does is shield your personal assets from a lawsuit….A…why would they sue…B you hae insurance..C. they gonna sue your business assets…the property…who cares
Patricia:
Wayne Z, I was just wondering what is the purpose of doing it that way.
Share

Leave a Reply

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