Setting Up An LLC For Real Estate Investors (Ultimate Guide!)

Summary

This video provides a clear, actionable guide for real estate investors, including STR hosts, on how to protect their rental properties using LLCs and Land Trusts. Attorney Clint Coons explains that the first critical step is to determine if the property has a mortgage. If the loan is owned by Freddie Mac or Fannie Mae, hosts can likely transfer the property directly to an LLC without issue. However, for other loans, a Land Trust should be used first to avoid triggering the "due-on-sale" clause before assigning the trust's interest to an LLC. He also warns hosts to investigate local transfer fees and tax reassessment rules to avoid costly surprises.