Disclaimer: Transcripts were generated automatically and may contain inaccuracies and errors.

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What should my entity structure look like? Should I have an llc? Just listen. We’re gonna give you information. Take that, go talk to an attorney, go talk to your cpa. Figure out what the right approach is for you, cuz everybody’s situation is different and it’s gotta be what’s right for you. But we’re just gonna on a really high level.

Give you some information that hopefully will at least add some color and some context to that conversation. What would your life look like if you could replace all of your working income with simple and conservative investments that could do it for you over the last 13 years? We’ve helped thousands of clients transact over half a billion dollars in simple and conservative real estate transactions, allowing them to begin replacing their work income with real estate investment income.

Each week we’ll be pulling back the curtain on the ins and outs of real time retirement based real estate transactions that will transform your financial future. Even if you have no real estate experience, this is replace your income with. Kevin Clayson and Steve Earl.

Well, all right, here we go. Welcome everybody. Thank you for joining us on the Replace Your Income podcast. Where today we shall wax philosophical. We shall ask the question Steve. To llc. Or not to llc? That is the question. Ti better to, I don’t know. I’m not gonna try to keep going with that. . I I like that kid.

What’s up man? How are you? Doing well. Good, good. About today. Oh, this is a good one. Good morning out Steve. And I’ve been talking and we thought we’ve gotta make this a podcast episode. And so, uh, first of all, like always, thank you so much for joining us on Replace Your Income. You guys are awesome. Thank you for the continual.

Thank you for sharing the podcast and again, just a reminder. If you have anybody in your life that’s the least bit interested in real estate or that isn’t interested in real estate, but they need to be because dog on it, it’s good for ’em. Share the podcast even if you just share it with one person.

That means the world to us and it helps the podcast grow and it helps Apple recognize us as worthy of being considered worth listening. And so, uh, we appreciate that. But today, Steve, we’re gonna be talking about a topic that I know when I am talking to folks on a regular basis, I get this question like nine times outta 10.

If people are familiar. With business entities or maybe they’ve read a book or they’ve heard when it comes to real estate, that you should own real estate in conjunction with or inside of an LLC to like limit your liability. And people have heard it and I think you and I would agree that there’s some information out there as to it could be really good.

There’s some information that maybe. Maybe there’s a different way and here’s what we want you guys to know right off the bat. Steve, I’m pretty sure I know I’m not an attorney. Are you an attorney? I’m not an attorney. Cool. And uh, just double check it. Are you like a CPA or anything like that? No. Secretly I’m me either.

So we are not registered attorneys or advisors. We cannot provide legal advice. What we can do is speak from a place of experience, both as investors who’ve had LLCs and had real estate, and also just kind of taking. I guess foundation of working with thousands of folks in a variety of capacities where this has been a conversation that’s come up a lot.

Yeah. And Kevin, I’ll just add to that just a little bit. So I like your little disclaimer because the topic we’re talking about is LLCs and legal type stuff, and so we have to have that type of a disclaimer. And the other thing I would add is that, You always want to go talk to your attorney or with your CPA because everybody’s situation is a little bit different.

Yeah, that’s right. And so you wanna make sure that whatever you’re doing, whatever structure you set up as you invest in real estate, that you’re doing it according to your needs, to your state, to your situation. Yeah, exactly. So no matter what we talk about on the podcast today, we’re gonna give you some thoughts and some ideas based on our experience.

But no matter what we share with you as you are considering your investment journey, whether that’s with us at D fy, which we would be thrilled with and be super happy with, or if it’s you’re just kind of doing your own thing, you’re doing real estate, and you’re wondering, what should my entity structure look like?

Should I have an llc? Just listen. We’re gonna give you information, take. Fine. Go talk to an attorney, go talk to your cpa, figure out what the right approach is for you, cuz everybody’s situation is different and it’s gotta be what’s right for you. But we’re just gonna, on a really high level, give you some information that hopefully will at least add some color and some context to that conversation.

Yeah, so the thing that you have to keep in mind when you’re investing in real estate, make no mistake. You are a business owner, definitely very first property that you purchase as an investment, right? And as such, it makes sense to set up a corporation. It might where you live. An S corporation might be the best thing.

We have found that LLCs are a great vehicle. And so we’re gonna mainly limit our conversation to LLCs, a limited liability corporation. Yeah. So we’re not gonna go through, Here are all the different types of entity. Like we’re just gonna say, look, LLC is probably the most, I know for me in the real estate where I feel like every now and then I hear about S-Corps, but people are always asking about LLCs and we’ll tell you guys this too.

So part of the reason why this is, let’s tell ’em why this is sort of fresh on our. So we’re gonna make you guess on names, but we’re working with a very high level, nationally syndicated radio host and some members of his family to help them invest in real estate because they’ve got to know our company.

We’ve done some interacting with them, and they’ve got. Some ability to be able to go and do real estate. And so they’ve had this question cuz the family’s kind of wondering, Hey, should we put it in an LLC that we all own a piece of and we’ll go by properties. And then they’ve been trying to figure out what they’re gonna do and they are under contract.

They’re ready to move forward in getting some real estate. And so they’ve been asking these questions and it’s actually been holding up the purchase process just a little bit to kind of figure these things out, right? And so what Steve did the other day is he was in these email conversations and he wrote this awesome email just kind of saying, Hey look, here’s the pros, here’s the cons.

Here’s some of the things you want to. We were talking, we’re like, Oh my gosh, this is something we get a question on all the time. Let’s go through what those pros and cons are, like what you put in that email, because it’s just good information. And actually, Steve, I, I don’t know if you know this, but this is one of the things when we’ve asked for feedback like, Hey, what would you like us to cover on the podcast?

This is something that has been brought up sort of. This isn’t necessarily like a tax strategy, but it’s a little bit of that, right? Because that’s what a lot of people think of with the LLC and with the entity. Is this gonna have tax implications and, and is it a good way to structure my real estate?

And so we always love to ask that question to llc. Or not to llc, which I think is ripping off Hamlet, right? Isn. Is it Hamlet to B? Oh, not to B. Is that what that’s from? I think it’s William Shakespeare. Yeah. Shakespeare. Is that the play Ham? I think. I think Hamlet’s the play. So as you could tell, this is not literary experts talking here, but I think it’s Hamlet actually, I’ll, I’ll be honest, most of my experience with that quote comes from the movie Billy Madison, because we can’t, in Billy Madison, they, they’re having the competition to see if it the same level of literary, you know?

Right. That’s about. Just so you guys know, most of you out there, you’re probably like, Of course it’s Hamlet. Or you’re gonna be like, No, it’s not Hamlet, you idiot. And, and me, My level of intelligence is Billy Madison. Okay, That’s, now you know where I’m at. There’s your gauge on my intelligence level. So, but we love to ask this question, Should we put it in an llc?

Should we not put it in an llc? And so what LLC is just, it’s this limited liability. Corporation or company, right? It’s a business entity that there’s a lot of companies that function as an llc. There’s some benefits, and again, we are not offering advice. We are not any kind of an expert on this. We’re just sharing with you our experience on it.

You should 100%. Seek an attorney or into CPA to give you real information. Okay. But we’ve used LLCs a lot and there’s some benefits. What is the, what is the benefit to owning an llc, Steve? Like, whether it’s just in general or in conjunction with your real estate? Let’s talk about that just to start.

Then let’s talk about some of the cons. Okay. First of all, I don’t know how awesome the email was that I wrote. It was awesome, but it did help solidify some thoughts and brought to light, Hey, we should probably address this topic. So when people ask us the questions, and the question is specifically, should I deed my property into an llc?

And and my response is this, And Steve, I wonder if just. We’ve got so many listeners with all sorts of varying backgrounds. Will you just talk to real quick what it means to even deed a property period? Like what are we talking about there? Yeah, so when you deed a property into an llc, basically what you’re doing is you’re changing title and ownership of the property from your personal name to the name of an entity.

So the entity becomes basically the owner of record, Right. Is effectively what you’re saying. Yeah, and, And if we’re talking pros and cons of doing this, I mean, there’s a number of pros and there’s a number of cons. The one main pro, the main one, the one main purpose for deeding a property into an LLC is for liability protection, right?

It’s the idea of getting it outta your personal name so that, let’s say that somebody trips and falls, you know, on your sidewalk and they get injured, and now they wanna sue you. And let’s say that you’re somebody who owns multiple properties, or maybe you own a business or maybe whatever, you own a nice car.

The fear is that somebody could sue you and go after all of your assets, right? All of your wealth, right? And so people think that by de the property into an llc, it adds one level of protection, and potentially it does do that. And I’ve had many conversations with my attorney, with our corporate attorney as to how much protection that actually gives.

And more than one attorney has told me that, Hey, any attorney worth their salt, a high percentage of the time can pierce that corporate veil and it becomes a moot point. Yeah, right At the end of the day. Now having said that, there is that one additional level of protection if you follow all of the rules and regulations of, and.

On going into the future of your llc, the operating agreement and all of the articles of incorporation, all those types of things that you have to do in order to keep that LLC separate from all of your personal stuff and stuff is kind of a technical term when it . Yeah, that is, that’s a very technical term.

Right. I think they teach that in day one and in, uh, law school, we’ll have to ask if they, they talk about. So legal definition. So that’s, that is the one main reason for doing that. Now, I believe that there are other reasons for setting up an llc. One, I don’t deed my properties into an llc, but I do set up an LLC and I treat my real estate like a business.

Yeah. And so I have a tax ID number. I run all of the financials for all of my properties through the llc, like a. I do a tax return in the name of that llc, and so I take all of the benefits of a business. So for instance, if I get all of the tax deductions based on running all of the accounting through the LLC in that kind of a thing.

So I treat it like a business, but I don’t really use the llc. Four, the liability protection, because I’m not taking the properties in there where your true protection comes from for liability. A are, are the coverages in your property insurance policy now, So you wanna make sure that all the coverages are adequate for the particular area where you own the, the real estate.

Now, on top of that, for added protection, you can get what’s called an umbrella policy. Yeah. An umbrella policy sits on top of your, all of your individual property policy. And it helps give that additional coverage. And then on top of that, they’re designed to protect all of your other assets. Yeah. So when your insurance agent sits down with you and they’re looking at everything that you own, what your net worth is, they’ll be able to determine what the size and scope of your umbrella policy.

So, So if that’s a new word to you, umbrella and policy, talk to your insurance agent about it and talk to them. Ask them the ins and outs of it and what you would need to do to make sure that all of your other stuff, in addition to that one property or two properties, or however many properties that you have, are well protected.

And also, if the word umbrella is new to you, welcome to the English language. We hope you enjoy it here, but really an umbrella policy. That is one of, and in fact, you know what we should do, Steve, is we should have, we should have, uh, Ferg come in sometime and we could just do an episode just about coverages and about liability policies and umbrella policies.

And so I used to do an event with a guy that used to be a part of our company. He’d always tell the story when we would talk about this stuff. He’d talk about these umbrella policies or these liability policies, and he’d always would share this story about Bill Clinton utilizing his. During the whole Monica Lewinsky thing, I don’t really remember what it was, but because he had this liability policy, he was able to have a lot of something taken care of.

So the idea, I don’t remember what the story was, as you could tell, but what I remember is just that idea that the umbrella policy or this liability coverage, Yes, it can be an umbrella over the real estate and kind of what extends from it. But there’s other, as you were just indicating, there’s other areas in your personal life where coverage like that can be critical.

And so I think we would encourage you, at least as you are looking at the insurance levels, On your property as you’re considering liability, look into liability coverage and an umbrella policy at least. Yeah. So a couple of things. So I talk about pros and cons. The one main pro of a limited liability company is the, the potential added level of, you know, protection.

And I think that potential word, I think that’s a really key word, right? Because it’s not this broad sweeping, You will definitely be protected and you will definitely be kept separate from your investment if you own an ll. Because like you said, if you’ve got a good attorney on the other side, they could pierce that corporate prevail.

And here’s the other thing. This is one thing a lot of people, I don’t think consider if they’re just thinking about owning an llc, like, Oh, that sounds really cool, but I mean, there is a lot of things that you need to be doing to make sure that within compliance and you’re not. Kind of oblating all the good that comes from owning an llc.

And again, talk to your attorney about those things. But it’s more than just saying, I have an llc. Right? There’s a lot more to it if you do own one anyway. Yeah. So here’s, here’s a few of the cons, not of an LLC, cuz we want you to have an llc, but the cons of deeding your property into an llc, right? So first of all, like when you get loan, you get it in the name of your personal name, right?

And so title you are on title in your personal name. And the bank, their recourse is you, right? If you default on the loan, they’re going to come after you personally. And so because your name is on the loan and because your name is on title, and that’s what the lender is expecting. If you go and behind their back, you change the ownership of the.

That can be construed as loan fraud. That’s right. Especially if that was your intent from the very beginning, and a lot of people don’t think of that. Right. It’s a, Well, I mean, in 2008, 2009 during the crash and the great recession, In large part that was part of the crash. What was going on is there was these individuals who were building homes or buying homes, and they had run outta credit, they’d and so on, and so they would go to their friends or family or somebody that they met and said, Hey, if you’ll get the loan on this property, As soon as you close on it, like I’ll pay you $5,000 or $10,000.

Yeah. To use your credit and to be the owner of record initially to get the loan right. But then as soon as you close on it, we’re gonna deed it into the aim of, Of our business. Yeah. We’ll control it. There’s nothing else that you have to do with it. We’re just using your credit. And then we’re gonna move forward.

We’re gonna do with it whatever we want, but we’re gonna pay you a several thousand dollars. That was, that was a pretty attractive idea to people, right? It’s like, what? Just for using my credit. And I’ll be the like the quote buyer on this property. I’ll make five or $10,000 or whatever. And they’re like, Yep.

It’s like, Done deal. Let’s do it. The definition of that is a straw buyer. Yeah. And that was going on rampantly across this country. And so what happened is that when things crashed and the, the lenders came back to the, uh, to the owners, just to find that the deed. Had been changed into the name of an llc.

All of a sudden, these straw buyers, these people who were using their credit, were getting these properties back and getting calls from the mortgage company saying, Hey, what is going on here? Yeah, you just committed lo like you’re potentially, we could go after you for loan fraud. And, and on top of that, These people, they didn’t have the means Yeah.

To make the payments. They had no intention of making the payments. They had no ability to make the payments, but now they’re the ones liable for ’em. Exactly. Now, on the other side, the businesses that were doing this, there were a lot of, a lot of issues were created from this. And so that’s what you call a straw buyer type situation.

Yep. And that was, a lot of that was going on during that time and was part of the The cause, right? Yeah. There was a lot of, let’s just say loophole, that were trying to be exploited. I remember there was a big company. Here in Utah, and I had a big personality in front of it who was on the radio all the time, and they were doing this to a huge degree.

And I remember sitting in an office one time with this older couple and we were trying to see if we could help them in some way. And they were describing their whole financial story and they had been victim of this exact thing. Their son had done this with them. They went and got a loan in their. Then he deeded it into his llc, but then like literally, their son hadn’t talked to them for months because he was freaking out because everything was falling apart.

And now his parents were the ones that were on the hook. And so it didn’t matter that the property had been done in the parent’s name and then deeded into this other llc, it was causing all kinds of issues. And that is one of those things you don’t wanna run. The risk of you going and getting a loan in your name and then deeding it into your LLC and.

That looks or appears to the lender in a way that it looks like you’re doing something fraudulent. You wanna stay as far away from that as possible. So there’s one of those big cons. You don’t wanna create some sort of a straw buyer scenario, even though it’s maybe not really a straw buyer scenario.

Look, the lender doesn’t know that. Well, basically it’s not intentional. Exactly. Like people back then, they didn’t realize, They didn’t say to themselves, Hey, I’m gonna defraud, you know, my lender. It was like, Hey, this is a cool idea. And so they kind of. Ignorance is not a defense. Yes, that’s right. In any situation.

So the second, So one of the other reasons why I don’t like the idea of deeding a property into an LLC is that when you do that, when you change ownership, in addition to potentially committing loan fraud, is that in every contract, in every lending contract, there is a due on sale clause, which if you go through the process and you deed the name of your property into another name, The, the lending company, the mortgage company, they can call your loan due and force you to pay them back in full immediately.

Now, I’m not aware that that’s ever. Even been enforced before. Right. But it’s not to say that it couldn’t be . No, exactly. I mean, they have it in there for a reason. As long as you’re making your payments, then everything is typically good. But there is that in the contract that that could be enforced. It’s just one more, you know, you’re just getting closer to that line of, of creating more risk for yourself.

Right. And so you wanna try and stay as far away from that line as possible. I have a saying and it’s, everything is good. Until it isn’t. Yeah. . That’s right. Yeah. And that’s, And so it’s like that’s one of those situations, Hopefully everything will go great with whatever it is that you’re doing, but if it doesn’t then you know, things could get kind of scary.

Uh, it’s funny sayings like that. My wife can’t stand ’em because everything’s good till it isn’t. She’s like, obviously like one of my favorite is like, You don’t know what you don’t know. She’s like, Obviously I don’t know what I don’t know. And it’s so funny. And by the way, that impression that I just did of my wife is in no way reflective of her beauty or person.

It was just the voice that I used. I just, There’s my disclaimer. Yeah. You know, I don’t want somebody being like, Kevin’s on the podcast, and he’s like using a really grimly voice for you. What is he saying about you? No, no, no. She’s amazing and glorious and wonderful. But yes, so you’re right though, Steve, everything’s good until it isn’t.

And so a lot of this stuff, and I’ll tell, this is one thing I see too. There are because that real estate education world is so prevalent where people go and read books and receive this education and then they somehow feel that they’re an expert because they took a class or two or three. That’s where a lot of information comes from.

Like when you’re talking to your buddy that took a real estate course that he paid 15 grand to take, and then you’re thinking about going into real estate and your buddy’s like, Oh yeah, I took a class on this. So here’s the benefits of an llc. And they are also. Registered to give you legal advice.

They’re literally, it’s an opinion based. But there so often I see that when people hear an opinion or hear a thought from some friend that got some education that heard something somewhere, now all of a sudden what that constitutes like the legal definition of what you should be doing, that’s not the case.

And so the point here, Is, this is why you need to consult with an actual attorney. And all we’re sharing with you is just what we’ve seen with years and years of experience in dealing with this scenario and working around the edges and and utilizing having, There was even a time when as a company we were heavily promoting the idea of owning an LLC in conjunction with your real estate because there’s benefits.

Times change, Laws change, Things change. And that’s really what we’re talking about today is what we come to realize after many years. And you and I will be the first to say, Steve, we’ve made plenty of mistakes through the years in figuring out the best way to do things. That’s part of what it takes to figure out the best way to do things.

And so that’s why we wanna share this with you guys so that hopefully you can avoid some of those bumps in the road of learning it. Couple things here, right? So yes, there may be an additional level, a potential level of, uh, protection with an llc. However, we don’t wanna create a straw buyer scenario or even something that appears to be like it, and we don’t wanna trigger a due on sale clause.

Now, to your point, Steve, I can’t think of one. Single instance when we’ve had somebody that’s utilized an LLC in this way, or we’ve seen somebody utilize an LLC in this way when the due on sale clause has been triggered. But it’s not to say that it couldn’t be. Yeah. It’s just one of those things, Let’s not get too close to the edge.

Yeah. Cause Augusta Wind could come. So the third con for deeding a property into an llc, which I think that this one is probably one of the biggest ones, is one of the benefits of real estate. Yeah. This one too is the tax code. Right. So if you do your real estate, right, If you buy a property and a few years later you’re able to sell it for a profit, you can do what’s called a 10 31 exchange.

And at some point we’ll probably do a whole podcast about 10 30. Yeah, we definitely need to, but there’s a code in the tax law when you sell a property, you can take all of your gains and roll them into another like property and not get taxed on those gain. Now a 10 31 exchange has to be done in the name of the individual who owns the property.

As far as like your loan that you got on that property, that’s part of the 10 31 exchange process. And so if your name is on the loan, but it’s deeded in the name of your entity, you just created a huge problem. Yeah, you cannot take advantage of a 10 31 exchange. Now you can go through the process and you can do a 10 31 exchange, but if you ever get audit, Um, you’ll end up owing those taxes and penalties for not having done it properly.

So if you deed your property into an llc, You set yourself up for potentially not being able to participate fully in deferring those taxes, you know, indefinitely. So that’s one of the, the biggest things, because part of our whole program, our whole philosophy is to build a portfolio of properties that you’re, you’re not selling the property and, and then spending that money down.

You’re building a portfolio that’s generating cash flow and even. You’re replacing your income with that cash flow, and so ultimately, That’s what you’re after. And so the idea is to never like cash out of your properties, and so you could indefinitely take advantage of the 10 31 opportunity, which you kind of disqualify yourself from if you deed the property into an llc.

Yeah. One of the other things that I’ve heard our loan guy say too is if you have a property in the name of your LLC and you ever wanna do a refinance, That causes some problems that way too. It it does as well, for sure. Yeah. Now, if you talk to certain people, they’ll say, Well, you just have to be planning ahead, and as long as you take it out of the name of your LLC six months in advance, then you can do it.

I mean, Yes, to a degree, but again, you’re, you’re getting super close to that line. And if an IRS auditor goes back six months and they can see that there’s this going in an llc, out of an llc, all these different things you can disqualify yourself. Same thing on the, on the lending and refinancing, and there is cost.

To putting it into an LLC and taking it out of the llc, Right. All of the costs with the title company and with your attorney, and with all those things. So you’re adding additional costs and you’re creating additional complication. That, in my opinion, probably doesn’t need to be there. Yeah. Well, and here’s the other thing I think from the lending standpoint, like to your point, Steve, yes.

We could say in theory, I’m gonna go buy this property. I’m gonna put it into an ll. And I’m gonna think ahead and go, Oh, maybe I wanna refinance 12 months from now. Somewhat in six months are gonna pull it out of the llc. Here’s the problem with that. Rates right now are so low, but it kind of slapped everybody in the face.

Right? So let’s say rates go plummeting and what if sometimes rates don’t stay low for that long? I’m hopeful they’ll stay low for a long time now. Right? Well, the Fed has told us actually that they’re not gonna touch the rates. No sooner than 2022. Okay, good. We’re hopeful that that’s gonna be the case.

So, but imagine this, you wanna do a refinance and your property’s sitting in the LLC and you wanna take advantage of these rates, but you have to pull it out of the llc, let it season out of the LLC for six months, and then what if you kind of missed that window to take advantage of something that was available to you?

So again, not that we’re trying to knock this idea of putting properties into the llc, we’re just trying to kind of paint the picture and say, there’s so many people and so much of this education. These are the reasons to do it, and that’s, it’s not that that’s bad. It’s not. Those are fundamentally wrong.

It’s just in our experience of simple and conservative single family residential real estate investing, the way that we’ve found to do it, hitting these real estate singles and doing it for the average Joe for average everyday people like you and me, not institutional investors. There’s some things we wanna consider and what both the, the positives, but also some of the limitations are, and that’s why we’re sharing these things with you.

Yeah. And, and when, when the subject of LLC comes up, when people ask these questions, one of the things they say, Well, well, why don’t I just buy the property in the name of the llc? Oh yeah. That’s to begin with, right. And I’ll solve all of those problems. So, so in other words, some I, and I’ve heard this, where somebody’s like, I’ll just buy it in the name of a business because, and here’s part of the problem.

There is a lot of kind of, Marketing out there in your email inbox, and you’re getting hit up all the time, especially if you’ve ever owned an LLC or you’ve been a business owner. People are always trying to sell you on this idea of business capital and business funding, right? And so sometimes people think, Oh, we’ll, all just.

Buy it in an LLC with like business funding, but there’s also some difficulties there. Yeah, there are typically, if you’re gonna get a commercial loan, like a commercial loan is very different from a personal loan. And the benefit of getting a personal loan is you get the best of all worlds. You get the lowest rates with the longest repayment terms.

Right. Whereas in a commercial loan type situation, Typically you don’t get 30 years to repay the loan. You get 15 years and sometimes 20 years to pay the loan back, but that increases your payment and decreases your cash flow. The second thing is you’re never gonna get as good of a right on a business loan or a commercial loan as you are on, you know, a personal loan.

And one of the reasons why we focus on single family homes, Kevin, as you know, is that a property that has more than four units, so on that fifth unit, it is now considered a commercial property. And you’re gonna have to get a commercial loan on it. Higher down payments, worse interest rates, and a longer time period to pay it back.

Yeah. Now that’s one aspect of, you know, buying a property in the name of a corporation. The other thing is, well, it’s like, well, why can’t I just get a personal loan in the name of my corporation? Mm-hmm. , the real short answer is, You just can’t. Yeah. It has to be in your name with your social security number, verifying your income.

Whereas if you’re trying to buy it in the name of an llc, the LLC has to qualify. Think of an LLC as another person, cuz that’s what it is. It is. You are an entity. And an LLC is an entity and it’s separate. So if you have an LLC and it has a history of making and earning and so much money, then you potentially could try and buy or get a loan in the name of the llc.

But again, it’s not, The LLC does not get the same rights and privileges and opportunities as an individual person and that the lending. For an LLC or for a corporation for that matter, is it’s just different than it is for a person. For an individual. Yeah, exactly. Well, there you have it guys. And so here’s what we wanna do is, again, we’re not trying to tell you that you should or that you shouldn’t.

We’re just trying to kind of paint the picture and say, Here’s some of the things to consider. There’s pros and there’s cons. You should be considering both sides of it. And here’s what we’re gonna do, Steve. We actually had an. That did a video for us, and he’s somebody that we’ve worked with a lot and he did a video called Two llc, or Not to llc, which we have on the website.

So if you’re wanting to see the information, that’s no opt-in required. You could just go check it out and And he actually does a great job of presenting both sides. Both sides. The argument. Yeah, he really does. So you can go to dfy real estate.com. So just our main site. Llc. So if you go to dfy real estate.com/llc, what we’ll do there is we will post this episode specifically to that page.

We will put Brad’s video there and I think he goes, I can’t remember, it’s like 45 minutes or something like that. It’s a good. Solid presentation from an attorney about some of the, the pros and the cons. And then we’ll also just put a little bulleted list there of some of what we’ve talked about in this podcast, and then use that as a resource.

And if you’re talking to somebody and your friend who took the real estate course and is now smarter than you because they paid 15 grand to take the course, if they’re wondering about the LLC stuff, send ’em this page, DFY dash real estate dot. Slash LLC and just take a look, right? Just use it as a resource.

Our goal for you is what it always is. We just want you beginning to replace your income one property at a time in the best, most conservative, most dependable way possible, and in LLC will play a role, but it may not be the role you expected it to play in conjunction with your real estate potentially.

But again, you’re gonna want to talk to an attorney, talk to your cpa, figure out what’s right for you and your specific scenario, which is why we aren’t offering advice we or any sort of legitimate counsel. We’re just saying from our experience and what we’ve seen and learned and experienced. This is, We just wanted to give this to you because it’s a question that we hear all the time.

Steve, any last thoughts before we sign off? Nope. Well said. Awesome. Hey, thank you guys so much for joining us. As always, please share the podcast. Please go rate and review the podcast on Apple iTunes. If you have not yet, or Apple Podcast, we are so thankful you’re here. We love you. We appreciate you so.

And we will see you next week. Take care. Thanks for joining us on Replace Your Income with Kevin and Steve. Do you wanna learn more about our company done for you real estate and to see if you qualify right now today to begin replacing your income with. Simple and conservative real estate investing done for you.

Visit DFY intro.com. Click the orange button, watch our super quick webinar, and fill out the little form on the right side of the page. You’ll know within 60 seconds if you qualify to begin replacing your income. Right away. As always, please rate, review and share the podcast with friends and family. And until next time, just remember income replacement for you and your family may only be one property away.

See you next week.