Tax Benefits of using an LLC in Real Estate Investing | Eric Freeman, Beach Fleischman

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Join Ken as he talks with Eric Freeman about the best ownership structures for real estate. Eric discusses the various types of legal entities that can be established and explains why some forms of legal structure are much better than others.
To contact Eric or learn more about his firm you can follow this link: beachfleischman.com/about/lea...
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If you are interested in this topic you can find more information out at the links below.
Tax Advantages and Disadvantages of an LLCwww.thebalancesmb.com › ... › Business Types
Explore the LLC tax advantages and disadvantages that you should be aware of before starting a limited liability company.
What Are the Tax Benefits of an LLC? - LegalZoomwww.legalzoom.com › articles › what-are-the-tax-benef...
Regardless of the tax treatment chosen, the business can take advantage of tax-deductible LLC expenses. However, with respect to the LLC deducting certain ...
What Are the Tax Benefits of an LLC? - SmartAssetsmartasset.com › taxes › what-are-the-tax-benefits-of-a...
Apr 14, 2020 - But the true advantage of this title comes in the form of tax benefits. LLCs give business owners significantly greater federal income tax flexibility ...
How Becoming an LLC Could Save Taxes Under Trumpwww.investopedia.com › ... › Small Business Taxes
Jun 6, 2020 - This means that the LLC tax rate varies. ... game as such an agreement would no longer obligate them to provide health benefits to that worker.
#RealEstate #TaxAdvantages #KenMcElroy

Опубликовано:

17 июл 2024

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Комментарии : 119

@lordrichard8184 3 года назад

Another good tip is to meet with the tax accountant in (early) October. This way if you do need to spend money they can tell you how to do it and how much. And then you’re not scrambling in January to find a guy that can backdate invoices to December

@AC-vp4ss 3 года назад

GREAT video! Thank you for breaking it down making it easier to understand. Video’s regarding this topic is helpful!!

@simonforall 3 года назад

Always great to have you on my mornings thanks for sharing your knowledge with us!!!!

@MoveOrInvest 3 года назад

Good video on one of the most common questions I hear from new real estate investors. Thanks!

@Mr.RyanXXX 2 года назад

Great video Ken! Yes I'm back your voice in my head called me back lol so grateful for your knowledge 🙏

@brookelopez3068 3 года назад

Thank you this was very helpful!

@Sinahdlngs 3 года назад

Great channel. Does he have any recommendations for real estate agents to structure their business to save $ on taxes? Thank you.

@ianthesiow3013 3 года назад

TQ and very informative. Appreciate.

@BB-jt7hl 3 года назад

Thank you!

@ylite9550 3 года назад

Thanks for the information!

@MakeMoneyGuide 3 года назад

Thanks for sharing this!

@antoniog7367 3 года назад

Thank you for all the knowledge shared on here. Learned a ton and hope to one day use the information

@jlmartinez7 3 года назад

Great work gents!

@anonymousdata6771 3 года назад

You guys rock! Great video!

@lokeman831 3 года назад

This was extremely helpful I'm just starting out with a duplex this particular segment was perfect for me.

@timxu666 3 года назад

So the bank doesn't want give loan to a individual who already has 2 houses? But if you use a LLC to buy a third house, the bank will give you the loan, right?

@1225pong 3 года назад

Tim I don’t think an LLC will affect your loan approval whether it’s your 2nd or 3rd house. Whether or not you can borrow a loan under LLC depends on if that LLC has some history of income flow. Most of us won’t start an LLC it has income flow until we have our rental property, so the best way they mentioned in this video is first borrowing money under your personal name (and the property is also under your name) and after a year or so you can change the name of that property to be under LLC while the loan still under your name. After few years your LLC may have enough history of cash flow that you can buy property next time directly under LLC.

@aylindiaz3096 3 года назад

jayben

@aylindiaz3096 3 года назад

@@timxu666 aila

@carlyzel Год назад

Thanks so much for this incredibly informative video! It did raise a question though. Did I understand correctly that you should have your personal property that you live in, your car, and your spending money (for holidays, eating out etc) in a separate LLC than the LLC your rental properties are in?

@thomasmoore7036 Год назад

Wondering the same. Sounded like it was all in the LLC. Later, halfway through Eric mentioned that if you’re growing, an S Corporation can be used as an ancillary part of your business. EG, the LLC are your workhorses and the S Corporation can be implemented as the HQs/MGMT arm of your business for fringe benefits and expenses (vehicles, company credit cards, company health plan, etc.).

@geoffreygeytenbeek9809 3 года назад

Question: Tax Benefits of using LLC vs Foundation for property investing and estate planning

@JuanAlvarezPurposeWarrior 3 года назад

I’m so blessed to have watched this video thank you. 🙏🏼

@InvestorMelDave 3 года назад

Amazing content!!!

@explorewithping5757 3 года назад

thank you for the content. it suits my situation perfectly. i have my current loan in my own name. but in 1 year, if i am going to rent this place out. will take your advice and transfer it to a LLC.

@realtechmar324 3 года назад

I’m in the same situation in that I would like to rent my current home of 20 yrs. so is the key to QC the deed into an LLC but retain the Motgage in your name to avoid DOS clause? What’s the best method here for asset protection?

@desertforest2221 2 года назад

Thank you so much!

@buckjohnson2836 3 года назад

Thanks Ken, really appreciate the content here and all your video's. Keep them coming! Would love to see a video if you don't have one already on how to get that first time investment property loan through the LLC. Sounds like most do it personally at first. Thanks again!

@thomasmoore7036 Год назад

Yes, it seemed like that first rental converting your home’s title to an LLC when you have a conventional mortgage is a gamble. How to avoid triggering the pay upon sale clause. Especially now with interest rates rising, banks may be more inclined to call those loans that were originated with lower rates. Would love to hear more on how to do this tactically meanwhile reducing the risk of having the bank call your loan upon transfer to an LLC.

@AB12CD34EF56100 3 года назад

Please tell us how to buy a foreclosure property (House). I need to buy my first home. Is it beneficial to buy a foreclosure home or regular listing homes. Also, how much down payment is good to give in the beginning. Thanks

@joyfour4995 Год назад

Hi Ken, I love your videos. They are so informative. I have a question for you. If I have rental property, only one, and I get an LLC, what do I tell the renter when they want to know who is managing the property?What would I say?

@geminigirl1111 3 года назад

i just bought my 1st rental property with an FHA loan so i have to live here for 1 year- when the 1 year is up i plan to rent it out asap- Will i be able to transfer my deed to LLC with fha?

@ryanj.hanson6920 3 года назад

What would be a good structure for operating short-term rentals without purchasing the properties but rather leasing them from a land lord?

@AwarenessRevolution 3 года назад

But you didnt list any tax benefits from an LLC

@dmustakasjr 3 года назад

Currently working with Provision tax planners. Getting started buying real estate (multi-family). My wife and I dont meet (and lifestyle keeps us from meeting) the real estate professional status, are there any other options thru incorporation or other means to move from passive to active for real estate?

@Luminitaispas Год назад

You can take all the expenses of holding the real estate with the exception of the principle. So: intrest, property tax, property insurance, utilities, maintenance, and depreciation.

@roseannakyle1275 3 года назад

Thank you for all your great videos! If you are wholesaling and have a LLC, is it smart to put the contract with the seller and buyer in your LLC?

@thirdhandcarlisa2580 3 года назад

i just bought my 1st rental property with an FHA loan so i have to live here for 1 year- when the 1 year is up i plan to rent it out asap- Will i be able to transfer my deed to LLC with fha?

@hervekenfack4633 3 года назад

Hello ken! Wonderful topic.... You talked about an LLC ! As you own those properties under your name in the beginning , do you have to create an LLC of your own afterwards orelse you have to transfer your ownership to an existing LLC in your area ?

@Bluewh174 3 года назад

LLC or incorporation...whats best ?

@natieralickfeldt5160 3 года назад

This topic is perfect. I recently found out that you could purchase through an LLC. My husband and I are both 24, just starting out, should we seek out a reputable tax accountant so early or does that come later when expanding?

@sisterstaketoo1981 3 года назад

Natiera Lickfeldt Congratulations! We are just starting out as well. I use a black owned accounting firm dnp financial I’m based out of philly but I think they work with every state I’m not sure. I think it’s never too early to start asking questions and getting guidance. The woman I work with has been a wealth of information in guiding our next steps and presenting options we didn’t know about or expounding on options we did. Good luck with everything 🤗

@leslieperez279 3 года назад

Never too early. You will learn as you grow, which can be invaluable

@netlifetoday5193 3 года назад

I see you talk about asset protection, which is critical. Please let know the info so we can get started if possible.

@verympressiv 3 года назад

Great video Ken!

@tank2679 3 года назад

What's the best way to do real estate wholesaling. Through LLC or S Corporation

@McLovinMcFlurry 3 года назад

I couldn’t tell you that but I know one advantage of an llc. If your buying REO (bank owned property) they don’t allow you too re assign the contract. But a trick I learned is if you set up an llc and have your proof of funds, you can contract the Property then when it’s time too close you and your investor already have a deal worked out that he will pay you for the rights too the llc instead of a wholesale feee

@bleacherz7503 3 года назад

What about real estate taxes?

@bleacherz7503 3 года назад

What about real estate taxes?

@Christian_Prepper 3 года назад

@kevin Hanks *When a new LLC is formed a request to the IRS can be made for that new LLC to file as an S-Corp. Thus a person can get the legal protection of an LLC & the tax benefits of an S-Corp.*

@CAneedswater 3 года назад

What about having a tax-attorney, or are you better off keeping them separate?

@BrogeKilrain 3 года назад

I have LLC Delaware commercial building 5 tenants that will be paid off next year , I would like to not pay DE 6% income tax . If I lived in FL would that change income state tax as property in De ?

@fl3082 3 года назад

Would you suggest having a single LLC to hold 2, 5, 10, 100 properties? Should each specific property be held in an individual entity (to isolate them from each other as well as from myself)? By owning, for instance, my own residence plus let's say 5 rental houses... if a tenant sues me, i can lose all 6, right? If i had a house in my name and all 5 rentals in "MyRentalsLLC", and a tenant sues the LLC, i still risk losing all five, right? Where do you see that balance between "maximum asset protection" and "my accountant just jumped out a seventh-story window"?

@Jerrodbasketball 3 года назад

Very good questions. I would love to know the answers.

@kimm8821 3 года назад

I had the same question! You should talk to Attorney Robert Bluhm. I participated in his webinar trough Jason Hartman! I learned a lot and I am more confidence right now!

@macynguyen8864 3 года назад

Ryan den Otter very very good info ty

@josephrobi6806 3 года назад

Ryan den Otter nicely put together very clear thanks

@jimross2101 3 года назад

@@ryandenotter9064 Boy, you made that attorney a lot of money!!!

@businessguide6219 3 года назад

Reliable and humurous, the kind of resource I'm looking for!

@jgg204 3 года назад

Did you offload your hotel holdings ?

@sammyalabamy111 3 года назад

My friend rents his home from a Property Manager, my question is can he use an LLC on his home? Does having this mainly protect against a bankruptcy in that the home cannot be taken away from creditors, and also in case of being sued by renters, the home is not taken away for any reasons?

@Corkfish1 3 года назад

It doesn't protect the property in the LLC. it protects all your other personal assets from lawsuits associated with the property. It limits your exposure to the asset in the Llc. If you have a vacation rental on the beach and a tenant drowns, they might be able to get the rental property but they cant come after you.

@kathalinehansen7078 3 года назад

add Podcast name into your thumbnails and video title. And guest name. Also, your podcast is available on Google podcasts

@loulupero4147 3 года назад

Ken I understand keeping accounts separate, as small investor , just file LLC in MD $300.00. Is it worth expense?

@golondriz3 3 года назад

Advice from both! Yes!

@anthonyc362 3 года назад

What if one is already investing as an LP as an accredited investor in syndications with the goal of being a GP in the future? Should they be doing this now through a holding company so they can write off the travel, training, depreciation etc against the income from the investment ps as an LP?

@waltergalaga3379 2 года назад

So you could be a GP, but at first or minimum, you must get a Series 65 license to charge on GP management fee, or even more you could be GP using LLC as your GP entity, so that you could get veil

@motivationalsuccess88 3 года назад

I learned a lot about taxes i tough i new stuff

@jgpainting8815 3 года назад

I currently have an LLC for my construction business. Can I move my properties under that LLC? Those properties are rentals right now

@andychang7137 3 года назад

So if I only have two or even one rental property, can I start an LLC? Thanks.

@SteveBoyer10 3 года назад

You can start an LLC at anytime for whatever reason you want.

@Bluewh174 3 года назад

LLC OR Incorporation, wats best?

@maximumhomebiz 2 года назад

Love it 😊

@carlosh448 3 года назад

LLC on a duplex? I am of the process looking for a duplex.

@skeetmcpeet409 2 года назад

What do they mean by asset protection? Putting it under an llc and not your name is asset protection. Please explain

@aledevans732 2 года назад

Can you claim back tax on solar panels and batteries for your rentals in the uk thanks

@JM-yf5rt 3 года назад

If one cannot put the property in an LLC because of the mortgage and the bank, can one instead set up the LLC as a property management company? And then use the property management LLC to deduct expenses for taxes for maintenance, collecting the rent, etc?

@vaughnstevieraymardero5733 3 года назад

Read my response to John Kot.

@Tykoon25 3 года назад

You should do one with garret sutton this guy you had on yo get a better idea of how asset protection come to play with LLC an taxes

@capitalistrebel9358 3 года назад

I am in NH I have 4 family on my name (I do not live there -investment property). Bank will not allow me to switch to LLC. Can u advice if I can set LLC without bank knowledge LLC for just asset protection reason. What will be the best road to take?

@chloewang7306 3 года назад

You probably can form an LLC first and then contributed all your property to the LLC.

@vaughnstevieraymardero5733 3 года назад

Check with a knowledgeable real estate attorney. Ask the attorney to set up a grantor (land) trust with you as the beneficiary for the property. Then you should be able to register an LLC and anonymously transfer title from the trust to the LLC without the bank knowing or enacting the due on sale clause.

@ludgenspierre2307 3 года назад

This is greatly informative

@D-NICE79 3 года назад

Can I do this with my personal home?

@lovelytea5764 3 года назад

Great question

@SdDawg-yw5qk 3 года назад

Worthless. There is no tax benefit from putting real estate in an LLC or an LP versus holding it personally. It’s purely a legal shell for asset protection purposes (and maybe a little anonymity) and it’s going to cost you in legal and CPA fees every year to properly maintain. In California, that LLC will actually increase your tax liability. Having a dedicated bank account per project will certainly simplify the accounting, but you don’t need to form an entity to get that separate bank account. That said, I think you should have all your property in either an LLC, LP, or even a GP ......just don’t do it for tax benefits.

@romanrytov8886 3 года назад

You don’t need an LLC to have a separate bank account of course. What kind of risks does LLC mitigate comparing to owning it directly? The bank default is not a joke if for whatever reason they decide to default you (though agree that usually they won’t). What’s the upside of having an LLC if you the loan is on your name? Would be nice to have real examples of mitigated risks.

@bcoldwell1 3 года назад

Agree. I heard nothing to say there is an advantage of and LLC over keeping properties in my name, as long as I have a good personal liability/umbrella policy.

@GreenvilleSouthCarolinaRealtor 3 года назад

My husband and I live in Bend, Oregon. He’s a GC. I’m a Realtor. We’re starting our portfolio. Do you have a recommendation for an accountant like Erik, in Bend?

@rawcircoking 3 года назад

Gc?

@javiermendez2411 3 года назад

Love your content! Thanks A lot!. Any way you can do one on rent control properties. Much appreciated!

@ddillard143 3 года назад

I believe that's the one they was talkin about buy-and-hold. So you use an LLC

@frisisdeleon7928 3 года назад

Thank you so much for the great content. I have a question, I don’t have a credit record at all so instead of creating a credit record with my name before I acquire a Real Estate property. Could I open an LLC and then open a bank account with that LLC and create a credit record for that LLC? Would that be possible and/or advisable? So that when I get that real estate property I can get it into the LLC and the loan, too.

@teresaanderson6370 3 года назад

New sub from your interview on Peak Prosperity.

@benardosilva2276 3 года назад

Thanks for the great video 👍 one must surely invest in life to make profit. Investing make up the top notch hemisphere of the wealth. That's the more reason one should save and invest to secure profit and ensure success

@babeedoll64 3 года назад

How do I get money out of the llc? The money taken out is taxable income ?

@Corkfish1 3 года назад

You get a K-1 from the partnership or s corp with the associated tax liability

@tellinustr8up 2 года назад

How can i get this Tax accountants contact info?

@jasonlampione5459 3 года назад

Why pay taxes at all?

@rodrickbernard1156 3 года назад

Investing make up the top notch hemisphere of the wealth. That's the more reason one should save and invest to secure profit and ensure success

@kokake 3 года назад

They mentioned 0 items that would save money in real estate

@mommaoinnh2674 2 года назад

Most of us, with one duplex, can’t afford to have an ‘Eric’.

@paulross2979 3 года назад

Another Benefit on using a C Corp in Real Estate is you wont get flagged as a Dealership.

@rohitnandam9896 3 года назад

Sir what is LLC? Is this LLC can be started in India?

@quanticowoodard3946 2 года назад

He never said what was the best, way to set up for long term rental holdings

@mariadelcarmenrodriguez3924 3 года назад

HI I NEED HELP SOMEBODY TALK SPANISH?

@JungleSecurities Год назад

The social distancing disclaimer really necessary? 🤦‍♂️

@quanticowoodard3946 2 года назад

This 19 mins wasn’t so loaded with info

@BlkOut305 3 года назад

Is it worth getting an LLC for just one duplex? I want to do what’s best financially.

@paulpena9548 3 года назад

I wouldn't. You should talk to your accountant because you generally have to file separate taxes for every LLC you have created.

@larrystanley1704 3 года назад

I would just for the liability aspect protection. Yes you have to file a separate return that compiles with your personal return I have three.

@brandonb5818 3 года назад

This video should just be named "The benefits of finding an accountant" because thats all you talked about. You didn't actually go into details about much at all