Hi, I have an LLC in California and I would like to purchase investment properties through that LLC (no loans). Is it possible?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Hi, I have an LLC in California and I would like to purchase investment properties through that LLC (no loans). Is it possible?
Asked on June 18, 2009 under Real Estate Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 15 years ago | Contributor
Legally? Absolutely. LLCs, like corporations, can purchase and own property, including real estate. (That is, as long the the LLC agreement does not restrict them from doing so.)
Practically? It depends. It's tough right now for anyone to buy property. If yoiu have enough assets in the LLC to either pay "cash" for the property, or else so that the LLC is a good credit risk and can get a mortgage, then you should be good. On the other hand, if the LLC does not have good credit and/or enough assets, banks might require you to personally guarantee the loan and/or use your own assets as collaterol for it, which they are allowed to do.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.