Real Estate Holding Company

 Real estate investors commonly use holding companies because their assets are simultaneously valuable and inherently risky. Each property can be easily put into its own silo to avoid the liabilities of one property from affecting another.
Generally, there is a master company at the top with children LLCs at the bottom. Each LLC is owned by the master and holds a single property. That LLC is in charge of hiring contractors, signing agreements with tenants and maintaining the property.
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