“One of the biggest reasons to have your real estate in an LLC as opposed to your personal name is that limited liability that you get with the LLC,” explains Spiro Hristopoulos, Real Estate & Business Law Attorney. As real estate investors, it’s crucial to understand leases and LLCs. Today, Spiro joins Pam to demystify these processes to protect our assets.
One of the biggest issues with an LLC is adhering to the proper maintenance of an LLC, including co-mingling funds from your personal bank account with an investment property or having just one bank account that has money coming in from various properties into just one bank account.
If you’re an investor, you must know the lease and LLC dos and don’ts. Learn more about Spiro’s commercial and residential tips, what to consider when evaluating lease provisions, and what to look for in an attorney.
“I always recommend separate entities for each asset, whether that's real estate or business.” (2:09 | Spiro )
“The first tip for investors is make sure you have a good application process and thorough credit background, financial checks on your tenants, whether it’s residential or commercial, making sure you're doing the due diligence on your end.” (9:06 | Spiro)
“On the tenant side for commercial leases, consider trying to get some type of exclusivity for your industry. Typically landlords are willing to provide that, with some exceptions.” (13:18 | Spiro)
“I recommend anyone that's looking for assistance on real estate transactions or lease review, one easy way is look at the attorney’s website to see if they have the purchase of real estate, entity formation or lease review listed on there. And also be sure to ask questions specifically about those areas during your consult call.” (15:47 | Spiro)
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