NO, agents should never advise on how to hold title (even if you think it's in the client's best interest) direct them to a lawyer. Financing property held under LLC title is tricky, but can be done.

By the same token, many lenders limit the number of financed properties you can hold under your own name. This is an indvidual decision for each investor and they need to seek the counsel of their tax and legal advisors.

Not unless you are an attorney!!

    You can talk in generalities, mention the website and the Office of the Florida Secretary of State, Division of Corporations (where you create an LLC)... but if you "advise", you are crossing the line into Unauthorized Practice of Law (UPL) here in Florida. 

I would not offer that sort of legal and financial advice but tell them to consult an attorney and their tax professional

they should talk to their attorney about whether to try to buy in an LLC

I'm with Pete X with X Group Real Estate Advocates, Huntington Beach, CA 714.459.2017 OCLister.com - it is not up to a real estate agent/broker to advise on legal/tax matters like this.

No. Use of LLCs is not the best solution for many investors. They should seek advice from their accountant and their lawyer.

Not unless you are an attorney!

I try not to give legal advice of how to hold properties or in what entity. I give the pros and cons and let the buyer speak to a lawyer to decide that, 

Fannie won't let them purchase under an LLC. They close as an individual and then immediately file the LLC. If you purchase cash you can do anything you want including filing as an LLC or trust.

I agree with others. I do not advice cleinst on legal stuff.

I don't think any investor wants my advice, and I doubt if my broker wants any agents advising anyone on something that can be considered legal and tax topics.

Good morning Shuchi. I buy all of my properties in an LLC, as they are mostly to flip, just don't want the personal liability.

 Good morning. You are a real estate agent not an attorney. Have them talk to their attorney. you will get yourself in more trouble giving out legal advice.

I never give advise outside of my area of expertise.

Shuchi Agrawal we are in Real Estate - and such advice should be from their financial consultant!

Shuchi,
I don’t advise them on legal and tax issues like that. Once the tax person and attorney tell them what to do, we find a way to finance it.

You should have the investors receive advice from their tax accountants / tax lawyers and legal advisors about such issues.  There are many factors to consider.  You should NOT provide any advice on these issues.

Shuchi Agrawal LLC vesting does not protect an investor much. Only a few lenders allow them and charge a higher rate for this vesting and require personal guarantees and right to take over management. LLC has a large annual cost, additional taxes to be filed with filing fees, not a DIY project- investor needs a savy tax accountant and attorney.  I'm not offering advise, saying it's expensive. 

only if you are an attorney and/or a CPA.  I generally recommend they speak with one to figure out liability issues and tax strategy. I may know what I think they should do, but I am not allowed to give legal or tax advice by my real estate license.

I agree with the others on having proper channels of advice.  However, if someone asked me, and after I told them to consult an accountant or tax advisor, I might mention that other investors I have worked with bought it in their name, then transferred it to an LLC.  Not giving advice, just telling a story.  Not an accountant, nor do I play one on TV.

Pete X with X Group Real Estate Advocates, Huntington Beach, CA 714.459.2017 OCLister.com answered the way I would and did it first.  

There could be tax implications under FIRPTA for the buyer by purchasing the property under an LLC instead of as an individual.  Always best to check with the professionals.

Shuchi Agrawal No, send them to a real estate attorney.

Absolutely would never give legal or tax advice. I have attorneys and accountants that I recommend.

I will share with clients what I do with my investments to give them an example of one way it's done.

It's really all about limiting your personal liability .

We recommend they speak to their financial advisor or attorney.  Most recommend an LLC for each property.

I dont advise on this, they should consult their attny and lender for this.

That would be my recommendation with a caveat that the client also consult his accountant and attorney. When I worked with a developer/investor, we formed a separate LLC for every property.

I would never advise a client, thats what a RE attorney should be doing. 

I would never give legal advice.... 

don't give advice on any legal or accounting issues..... 

I hold all of my properties in LLC's.  They can take possession in their name and then have the name changed in the tax records after the financing has been completed. 

Yes, they bring their preapproval letter.   Those with hard money letter often wanted to bid 50% under going rate. That means they put nothing down.  I tell them to take a hike....