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It's interesting that many of these businesses are basically real estate holding companies. I wonder how many of these businesses are just tax-minimization or f
by josephby 13y ago
It's interesting that many of these businesses are basically real estate holding companies. I wonder how many of these businesses are just tax-minimization or financing schemes used by larger companies for things like deferred compensation?
- trotsky 13y agoFrom what I understand the main purpose is liability shielding. Each property is run as its own LLC, and management is done via a centralized management company. If a person gets injured on the property, the liability effectively gets capped at the liquidation value of the building.
- samatman 13y agoWhen I hear someone is making a million dollars a year (not 5 million, not half a million) I guess in the following rough order: a) modest real estate holdings: a block of apartment buildings and a couple commercial properties. b) a large, successful construction company. c) operator of roughly a dozen franchise locations. d) is anyone's guess; outlier software firms, well-compensated financiers, CEO maybe. I know this doesn't address your question. Modest landholding is a common way to be in the 99.5.