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Also morbidly fascinating is why real estate companies are so much more into compartmentalizing themselves into all these LLCs/LPs/corps. Most of the time they
by ak217 7y ago
Also morbidly fascinating is why real estate companies are so much more into compartmentalizing themselves into all these LLCs/LPs/corps. Most of the time they seem to do it to maximize the tax advantages and entitlements (and contain losses) in specific locales. In California, most commercial buildings are held by a trust designed to never transfer majority control, to preserve Prop 13 property tax breaks.
- aeorgnoieang 7y agoI think it also pertains to how individual deals sometimes include additional investors or other parties to the deal/transaction, e.g. the parent company partners with another local company for a specific deal and thus creates a separate LLC/LP for just that deal.