This will lower your cost basis for the property, thus increasing the amount you clear from it. Not only should rental properties be placed under an LLC, but each property in a respective portfolio should have its own separate LLC. On the other hand, it can also expose real estate investors to risks and pitfalls they never knew existed. In fact, LLCs afford investors one of the most versatile vehicles to shelter their taxes and protect their assets. While the ability to generate sales and build your business is crucial to success, it is equally if not more important to keep it protected at all cost. Raw land can also be rented for production, usually agricultural production. Even though you may get five times the money due to inflation, many other goods cost five times as much to buy now so purchasing power in the current environment is still a factor.