Having Issue getting cash out due to title in business name

[William Howley]

Hi, in 2015 I bought a rental property for 50k cash under a business LLC name I had created. My strategy originally was going to be, purchase the property 100% equity, than get a first mortgage on that property to cash out and thus have enough capitol to buy another property.

This is were the problem occurs. Because the business is new, and only has income from that one rental property, banks are not willing to do a commercial loan. They are also not able to do a personal loan on the property because the title is in my business name and all of my income is from my day job. One bank had suggested also adding my name onto the title of the property so the title would have both the business name and my name. It would also have to season on the title for 6 months. 

Question is, do I assume more risk on the property by adding my name to the title, if I were to get sued for example? If this is the case and I must add my name to the title than my creating this LLC was pretty much a waste.

Any advice would be helpful I'm kind of stuck right now, and I have not found a way to expand my real estate portfolio. I have been stuck at 1 property for quite some time. 

[JD Martin]

And thus you've discovered why the LLC thing can be a hindrance rather than a help at the bottom end. Instead of bothering with an LLC, I keep more than 7 figures in total liability insurance between my policies and a PUP. I suppose it's possible to be sued for more, but I can't possibly think of too many things involved with my rentals that could make me personally liable for such an amount, especially with the weight of the insurance company's law firm fighting on my behalf. I was with an organization once where one of our drivers ran a light and killed another driver (a young girl) and seriously injured her father, and even that case ended up settled at $1 million. Yes, there are occasionally large judgments, but they are rarer than popular culture would have you believe.