Invester Liability questions.

[Mike Hanneman]

My father in-law wants to invest in my business. He wants to purchase a property with cash and then have me pay the loan plus a little bit of interest so he makes some money. He is worried about liability protection and wants me to set up an LLC for his protection.

I don't want an LLC yet because I don't have anything to protect as of yet, all properties are levaeraged. It's not nessasary for me yet.

Just being the loan holder, doesn't that render him protected? I mean home lenders aren't getting sued because of a home they lend on is.

Any advise please.

I know I need to talk to an attorney, my in-laws have and of course they recommend setting up 2 LLC's and all that. I was just curious if anyone else can shed some light on this for me.