Multifamily Entity Structuring · Real Estate Investing

Multifamily Entity Structuring

Sharing what I have pieced together on entity structuring for my first multifamily acquisition, would genuinely love feedback from anyone who has actually done this, since I want to get this right before I am under contract on anything.

Here is my current understanding, please correct anything that is off:

Most investors hold each property in its own LLC, to keep liability contained to that one asset rather than exposing the rest of a portfolio if something goes wrong at one property.
Some people use a holding company structure on top of the individual property LLCs, for centralized management and cleaner accounting across multiple properties.
One thing I recently learned from a broker is something called the Entity Transfer method, used to avoid a property tax reassessment to the new purchase price when a property changes hands. I do not fully understand the mechanics of this yet or when it does or does not apply, so if anyone has used this or has a CPA or attorney who explained it well, I would love to hear how it actually works.
I am also trying to understand how this changes once a JV or outside capital is involved, versus a property I would hold on my own.

A few direct questions for anyone willing to share:

What entity structure did you use for your first deal, and would you do it differently now?
Did you set this up before or after you had a deal under contract?
Any mistakes you made early on with entity structure that were expensive or annoying to unwind later?

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Multifamily Entity Structuring