Real Estate Entity - Which Real Estate Entities Are Best For Real Estate Investors?

http://www.REIClub.com - The Benefits Of Using Real Estate Entities For Your Real Estate Investment Business Are Many, But Which Real Estate Entity Is The Best For Your Type of Investing?

Corporations - C Corp
* quick turn cash deals - wholesale flips, rehab and retail, options, etc.
* great liability protection, great fringe benefits but must generate tons of cash to take advantage of all the benefits
* losses don't flow through to personal tax return, S Corp that has many of same benefits and allows losses to flow thru personal tax returns

LLC
* choice of management - member managed or manager managed
* choice of tax treatment - sole proprietorship, partnership like S corp, or corporation like C corp
* operating agreement provides flexibility
* good choice for long term holds and short term deals

Limited Partnership
* limits liability
* limited control over management and day to day activities
* requires General Partner to assume management/liability - possibly 2nd entity as General Partner - costs, hassle, etc.
* flow through tax treatment
* good choice for long term holds

Considerations
* state requirements (varies by state and year) - paperwork, fees, taxes, maintenance
* business primarily short term deals or long term holds or combination
* advice - attorney, CPA

In summary, if you ask around, you will get all kinds of responses as to what's best, but you likely do NOT need to set up an entity before you've done several deals and know you will continue with this business. At that point, it makes sense to get advice from a very knowledgeable real estate attorney and tax accountant as to the best choices for your own personal situation. Please take the time to leave your comments for this video below and please subscribe to our channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.
http://www.youtube.com/watch?v=FluCAHvk0Dc

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[jasreinfo]

This video was very helpful. I was wondering if I needed to create my business entity before I started doing deals, or wait until I had a few deals under my belt before creating them. Frank, you answered my questions, and I thank you for it. Definitely appreciate the insight. Getting those early deals done will also help pay for setting up the entities, too, so I think I'll take your advice, and wait until I've done a few deals before undertaking the entity. Excellent info; thanks again!

[reiclub]

@jasreinfo - Thanks for your detailed comment. I appreciate it!

[wrmoss]

This is helpful. thanks

[peter46064]

informative,very pleased with this information,i like your style you are a godsend.i would like to see something on an alien landing on earth from another planet just learning to speak real estate language needing a kingarden blueprint from a 2 z on how to begin a real investing career. respectfully under your charm,peter.

[WadeWestTv]

very very helpful

[buyhousesinkc]

Thanks Frank! 

[HonoluluSally]

Thanks MUCHO Frank! It was just what I was looking for - the different entity options and what they are best at doing. Now I need to go see my accountant so she can further advise me. Appreciate all you do to educate us!

[vicwinsbiz055]

Very useful & necessary Business Incorporating Options information. Thanks!

[Princesss1225]

Thanks for the info, this helps a great deal. I have a LLC but its for another company and product I have. Since I do need a entity until I get a few deals of real estate under my belt, I wont stress it starting off.