[miller99]

I need a second opinion. I am Canadian and will be bying one rental property in Arizona. I have been advised to buy the property through an incoporated company rather than through a personal purchase. Is this common practise?

[tickle]

If you mean a private sale, then I would advise against it. Especially being a Canadian buying in the States. I would go through a lawyer who can search the titles, etc. before putting down your money on a property in another country. I know it may look really good considering our dollar (CDN) is strong against the US dollar, but if you get into legal problems you will be paying through the neck and why get into trouble being such a distance away.

[DBmtgprocessor]

Lots of people purchase a property in the name of an LLC. There is nothing illegal about that. With you buying in US and being Canadian you are considered a foreign national. Depending on what type of loan you obtain the LLC may have to be established long enough to provide 2years history. It totally depends on the bank that is doing the loan. You need to find out from the person handling your financing (Mortgage Broker, loan officer etc)

[tickle]

DB, what is an LLC ? I am a Canadian with money, but I would never consider buying through a private sale in the US right now. I mean your foreclosures are phenominal at thismoment and expanding every day. Our CDN dollar is stronger (and I know what you are going to say being in the business you are in, that makes me more cautious) than it has ever been, so buying property in the US is very attractive right now and I am afraid Canadians are being too impulsive right now with even time shares in the US.

[Fr_Chuck]

A LLC is a limited libility company, it is used to operate a business, such as a house rental company. It is used to protect the owner form law suits against his personal assests in case of some claim.

Examples. They find toxic waste buried in his back yard and it is going to take 1/2 a million to clean it up, if it is owned by a LLC, than can only get the money and property the LLC owns, not the persons personal property.

Lets say that a renter is harmed by unseen mold and a US court, awards them a couple of million dollars.

The list of what ifs could go on and on. So most investors, at some point will use a LLC to protect thierself, and if they have a lot of rental property, may set up several LLC, to protect other property from risk of the other property.

So yes it is often a good idea Although actually I may wonder the sound judgement of buying rental property in AZ from Canada, you can't go over and fix a bad screen window, if the water stops at 2 in the morning.
You are going to have to use a mangeemnt company and contractors for all the work.