LLC Limited Liability Company

The LLC is an extremely favorable entity for holding investment real estate. An LLC is a hybrid, unincorporated entity created by state law. It is a cross between a corporation and a partnership, specifically designed to provide the owners three significant benefits:

   
 
The limited-liability characteristics of a corporation
The tax structure of a partnership under federal tax law
The flexible structure of a partnership
 
The primary advantage the LLC has over a corporation is how it is taxed; the advantage over a partnership is that the liability shield applies to all owners. Unlike the limited partnership, neither passive nor active owners have personal liability for the LLC debts and obligations.

LLC general partners or managers raise equity or debt capital through investors to acquire, finance and/or develop property(s). LLC real estate funds are involved in all major asset classes and have various strategic objectives, including short and long term holds for acquisition, financing, improvement and/or re-positioning.

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