Goals, Business Plans & Entities
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_trust-2bcce80d03411a9e99a3cbcf4201c034562e18a3fc6eecd3fd22ecd5350c3aa5.avif)
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_1031_exchange-96bbcda3f8ad2d724c0ac759709c7e295979badd52e428240d6eaad5c8eff385.avif)
Real Estate Classifieds
Reviews & Feedback
Updated almost 9 years ago on . Most recent reply
![Leah Fisch's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/376977/1621447659-avatar-leahf.jpg?twic=v1/output=image/cover=128x128&v=2)
What asset value justifies investing in an LLC vs Personal?
Long time lurker, new pro member just about ready to make the leap.
I'm wondering if/when I should invest through an LLC
I keep reading 'When you're just starting out and don't have assets to protect...'
Where would you draw the line and say 'ok I have assets to protect let me invest using an LLC instead of buying in my own name?'
I don't want to think small, I want to dive in with the mentality of a 'big investor' and start out with my I's dotted and T's crossed.
No I'm not using this to slow me down, I'm going to pull the trigger very soon
Thanks in advance for your advice
Most Popular Reply
![James Miller's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/326978/1621444514-avatar-txlawyer.jpg?twic=v1/output=image/cover=128x128&v=2)
In TX (where I practice), I advise that the first property goes into an LLC. However, many people have the theory of getting as much of the favorable lending as possible before beginning to take out commercial loans with an LLC. The asset protection side of me cringes at that; but, many people still do it.
The main drawback to the LLC at the beginning is that the interest rates will be higher, and the loan amortizations will be shorter, meaning higher payments and less cash flow. But, I think that it's a small price to pay to sleep better at night.
Each state is different though, so you should talk to a lawyer in the state where the real estate is located to discuss options.