LLC question — new investor with no history (financing and liability)
I'm a newbie around here, and I'm honing in on my first investment property purchase. I already know that an LLC is a good way to setup a rental business as a means of insulating my personal assets from potential litigation, but I'm not really sure HOW I can go about obtaining financing through a newly formed LLC.
My personal credit is stellar, and my personal home is owned free-and-clear. I've got sufficient money in the bank for a downpayment on any of the properties I'm considering (mostly under $300K). What I don't have is an LLC with any kind of history, nor do I have the cash to buy all of the potential properties outright. I'm assuming that most banks will require me to guarantee the new loan personally, even if I form an LLC tomorrow.
I'm also concerned that if I've already found the perfect property, I might not have time to establish an LLC before making an offer. Along those same lines, I know most lenders won't allow you to transfer the title of a property into an LLC while the loan is still in existence.
So, aside from accepting bad terms on a hard money style loan, what are my options here?
1) Do I put a place under contract, then quickly form an LLC, and then buy in the name of the LLC backed by my own signature? In that instance I imagine I'd need to carry a significant amount of liability insurance to protect my existing assets.
2) Do I buy in my own name, carry a significant amount of liability insurance, and later change ownership to an LLC once the place is paid off?
3) Am I missing some other obvious options here?
Any assistance would be greatly appreciated! I'm excited to get into this business, but I sure don't want to put myself in a bad spot given the litigious nature of today's society… it only takes that one tenant to make your life a living nightmare, and risking everything I already have is not part of my business model!