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Con: no residential loan so more expensive. Pro: some legal protection if everything is done properly. If just starting off you could get in your name and also buy umbrella policy. Some people transfer properties to the llc but banks don't always like it
Have you tried getting a loan through llc? Try that first and let me know
If it is going to be a single member LLC, make sure you design it right and register in the right state (Delaware, Nevada and Wyoming only). I highly recommend having two people in the LLC else it wouldn’t provide protection in many scenarios.
Why those states?
For outside liability protection. In case you have a personal liability, all states except these three can come after your rental property under single member LLC. If you have multiple LLCs in different states already, set up a parent company in one of these three. It will still protect you.
No it's not recommended. How many properties you have? If you create an LLC for every rental property then you are not going to get positive cash flow. Instead have an umbrella insurance upto your net worth (2M-5M) which is way cheaper.
Attorneys recommend one LLC for every property.
I have few rental prop. I discussed this with a few attorneys and they all recommended forming an LLC, best if you can do multi member LLC. I recommend you discuss this with an attorneys.
How did you convert the property title from your name to LLC?
Attorney did it for me.
Yes it is good practice and ideally one LLC per property. It is a lot more difficult to get a loan or purchase with a mortgage under an LLC though and if you initially buy a property with a mortgage and later change it to an LLC the bank could ask for the entire mortgage due as you have changed the ownership of the property. Umbrella insurance will cover you for a few million so if you are starting out you are ok not converting to an LLC until you have more properties.
How did you convert the property title from your name to LLC?
yes. no cons
How did you convert the property title from your name to LLC?
F