Look, before I dive into this subject, I'm not a lawyer, I don't play one on TV, this is not legal advice, it just my opinion.

We all have been plagued with the question of which entity to use when starting and running our own real estate investment company. I have been told by many "experts", to go with the Limited partnership. I didn't and here's why.

Limited partnerships will not allow you to write off your rental property losses, on the repairs of loss regulations. But, an LLC will allow you to do that. And when I talk about avoiding being a dealer, most people tell me to separate my resale flips from my long time keepers. And it isn't the best. I put them in the same entity to develop the investment intent. It's a much more powerful way to avoid being a dealer. Using this investment intent based on a supreme court case that Al Aiello taught me. I avoid being a dealer. But what about protecting all those equities? Well, that's where equity stripping comes into play. If you are a buy and hold person to any degree, get to our next boot camp. Al Aiello teaches you exactly how to protect your ASSets. He will teach you how to strip out all the equity in all those properties and totally protect those equities. You only need two LLCs to do that. Not an LLC for every one of your properties.

The conventional teaching is use an LLC for every one of your properties including every one of your flips. And that's going to cost you a small fortune. Plus, you're told to use limited partnerships when you're not supposed to be. But, there are a lot of times when you use a limited partnership But they tell you, times when you could use them, and when you're not supposed to use them. And using your own management company could have some devastating tax effects as well.