- October 27, 2017 at 8:16 pm #113898
If you’re a cash investor purchasing the property and have a contractor who is willing be paying for minor repairs as long as they are provided a return, does it make sense to establish an LLC and if so, should you put the contractor on the LLC?October 27, 2017 at 8:23 pm #114212
Great question Hugh. An LLC can be a good option to put your property in to reduce your personal liability and for tax purposes. I recommend meeting with a real estate attorney to establish how much of the LLC the contractor will own and how much you will own and having the attorney draft an LLC operating agreement to protect both members. A contractor can bring valuable knowledge as a partner to a fixer upper but have everything in writing upfront to avoid any issues when it comes time to sell the property. https://fitsmallbusiness.com/what-is-an-llc/ Here’s an article that gives more information on LLCs. Best of luck on your project.