Hi, I have an LLC in California and I would like to purchase investment properties through that LLC (no loans). Is it possible?

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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 12 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.


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