024: What is the Best Entity for Real Estate Investment with Clint Coons

On this episode of the InvestFourMore Real Estate Podcast I interview Clint Coons. Clint is an attorney who specializes in setting up entities for real estate investors. Not only does Clint help with legal protection, but he knows how to help investors with tax liabilities as well. I have had frustrations myself trying to get my accountants and lawyers on the same page. Clint saw a need for a company that can handle both the legal and tax liability aspects of real estate investing. Clint’s main goal is to help investors understand both the taxes and legal liability of entities and investment properties.

Why must real estate investments be in entities?

Clint Coons explains why investors need to have their properties in a LLC to be protected from liability. He explains what can happen if you only reply on an umbrella policy to protect yourself. He also tells us some stories of people he has worked with who have been sued and how they could have avoided the lawsuit with the proper protection.

Clint also explains how to properly use LLC’s and other entities so that properties have the most protection. If you commingle funds with LLC’s you may be making a huge mistake and not have the protection you think you do from a LLC. There are very specific rules you must follow when using LLC’s.

How can Clint help with tax liabilities and legal entities?

Clint says a major problem with getting legal and tax advice is the attorneys and accountants tend to disagree on strategies to use. An attorney will want to give the investor the best legal protection, but an accountant will be concerned with tax liability. In some cases an accountant won’t be concerned with getting an investor the lowest possible tax liability, but the lowest chance of being audited.

Clint says it is very hard to finds an attorney or accountant who knows how to structure legal entities for investors that make the best sense for legal protection and tax liability reasons. You want to be protected and take advantage of the tax breaks real estate can offer.

Can Clint help with rental properties and flips?

Clint says that real estate investors should use different entities based on what type of property they are buying. Flips should be treated differently than rental properties. Based on an individual investor’s situation some investors may choose different legal entities than others. In order to qualify for loans you may not want to eliminate all your taxes! Sometimes it is better to pay more taxes if it allows you to buy more hoses and qualify for more loans.

Why did Clint choose to specialize in tax and legal liability for investor’s?

Clint is an investor himself and owns multiple investment properties. He knew personally how hard it was to find a good source for the legal and tax side of real estate investing. He created his company; Anderson, Legal, Business and Tax Advisors, to help investors build the best strategy moving forward. If you are an investor interested in making the best tax and legal decisions for your investments I highly suggest talking to Clint and is company.

Clint Coons is an investor himself and knows the best ways to set up your real estate business. If you have ever had questions on using a LLC or S Corp or C corp, Clint can help. I am going to have his company go over my current tax and legal situation and see what I can improve on. You can get a free ($250 value) consultation with Anderson, Legal, Business and Tax Advisors here.