Q: A friend and I are thinking of investing in some investment properties. We’re looking to buy a house or two and use them as rentals. A real estate agent brought up the fact that we may want to think about forming a Limited Liability Corporation. What are your thoughts on that and do you think it is a good idea?
A: Many people use limited liability companies in their investments in real estate. For some people, the main purpose is to shield them from personal liability and for others its to permit them to have investors. For more information on the specific advantages and disadvantages to you, you should consult with your attorney.