What are some general rules and guidelines for holding various real estate equity in a Series LLC?

Hold your buy-and-holds in a separate Series LLC(s) from your fix-and-flips, as they are taxed differently. Flips are taxed as active income (a higher tax bracket) than the passive income from your “buy and hold” assets. People ask all the time, “how much can I hold in any Series LLC.” Each Series LLC should not hold more than $5MM in total property value ($1MM in equity.) After you have a asset holding company, the next level to the protection game is to create an operating LLC, which owns nothing but conducts all your business. This is commonly referred to as a “shell company.”. They are smart and all the big investors use them. If your portfolio ever exceeds $1MM in equity/cash, this is the point where it is recommended to establish offshore protection in addition to the domestic protection. Why offshore protection? Because it is the only definitive and ultimate insurance policy that ensures what you have can’t be taken from you. Everything else is good, but it’s not absolutely foolproof, and when you’re worth over $1MM you can’t afford to lose all your money from a lawsuit, no matter what.