Buying an Investment Property - Personal or Corporation Name?

Buying an Investment Property - Personal or Corporation Name?

Welcome to Wealthy Wednesday. Now, when we buy an investment property, sometimes I see some investors, especially somebody just buying one or two investment properties, they buy in their personal name. But here's the problem. If something happened to that property means you're renting the property, maybe sleep and fall or somebody sues you for something, it affects your personal credit, credibility, and everything.

But on the same side, if you have your investment properties in Corporation name, because the Corporation even though you are the owner of the Corporation, but it's a different entity. So the suggestion will be to open up a Corporation even if you have one property. Open up a Corporation, especially S Corporation, because the S Corporation, you don't pay double taxes.

You only pay one time. At the end of the year, either the profits moves to your personal income take from there or you pay the taxes from the Corporation account. So "S" Corporation, not C Corporation. I am not a financial adviser, but being in investment, that's the advice I give. So do that.

And if you have multiple properties, especially if it's rented, get insurance, liability insurance together umbrella policy under the Corporation name. So something happened, somebody wants to sue you, you're covered. Because it's hard to build wealth, but sometimes it's very easy to lose it. So, investment property, buy with the Corporation name.

Protect yourself, build up wealth. But protecting the wealth is more important. Hopefully this information will help to you find the next investment property.