When is a Real Estate Portfolio Defined as a Business and Not an Investment?

For Florida real estate investors, deciphering when their real estate portfolio goes from a passive investment to a fully operational business in the eyes of the law is a notable challenge. The distinction is crucial, as it influences not only the way you manage your properties but also the financial and legal implications tied to them.

The Differences Between Owning Real Estate Through A Land Trust vs An LLC

People and businesses build and pass on wealth by investing in real estate. It’s a process that involves acquiring assets that generate income or increase value over time and then making timely decisions on how to manage those assets. Yet, this path can expose investors to unnecessary risks without the right legal structure. Understanding the legal mechanisms available can significantly mitigate these risks.