LLC Real Estate Investments
What is an LLC (Limited Liability Corporation)?
LLC Definition:
An LLC created for real estate investment has the characteristics of a corporation, but it is not. It does offer some
of the benefits of a corporation, particularly the limitation of an owner's liability. An LLC provides lawsuit protection,
credibility, tax savings, asset protection, anonymity, the ease of raising capital, creating a separate legal entity for
personal protection for the investors, an LLC has a broad range of powers beyond that of a sole proprietorship, small
claims court benefits, separate liability for corporate debts, and perpetual duration. When you form an LLC you create
a separate legal person and you are a member. LLCs are preferred because they combine the limited liability protection
of a corporation and the pass through taxation of a or partnership. The downside to an LLC is that it does not offer the
free transferability of ownership, perpetual existence, and the ability to be owned by a single individual.
Investors can obtain small ownership of commercial properties in lower investment amounts than Tenant-in-
Common interests. Typical investment amounts start at $25,000 and up.
Diligent Financial Group works with the nation’s leading LLC property sponsors, helping our clients select
from a variety of high quality LLC programs. We especially seek those programs that offer fractional real estate
ownership of large, investment-grade income properties around the country.
We search for only the best of retail, hospitality, office, shopping center, oil & gas, multi-family
property offerings. We do not offer proprietary investment products, but rather only those properties that survive
our demanding, thorough due diligence process.
LLC Benefits
LLC’s can provide a professionally managed, institutionally funded “turn-key” real estate solution
with many benefits to the individual investor such as:
- Achieve potentially higher net cash flow with less liability (non-recourse debt)
- Creates access to a larger pool of higher-quality, institutional-grade investment properties
- Allows investors with limited funds to enjoy geographic diversification
- Enables investors to trade time and labor intensive properties for more passive forms of real estate ownership
- Passive Income generated by property can be used to offset Passive Losses with no phase out based on any income level
- Triple-net lease structure provides stable returns
- Interest can be transferred the same as sole ownership property
- Eliminate management obligations
- Generate renewed tax deductions that permit greater tax savings
- Benefit from the extensive due diligence performed