Forming an LLC (or other entity) befire first deal...

[Miles Stanley]

I know there is a long debate on this topic as to forming an LLC at the very beginning or after getting the ball rolling and waiting till a few properties in (I'm interested in buy and hold btw).

I know the formation of an entity like this isn't cheap, especially when the investment capital is low in the beginning, but I met with an attorney yesterday on an unrelated matter and at the end I got to chatting with him about real estate investing. He said the very first thing I should do is set up an LLC for protection of personal property and for asset/liability protection. I see his point of view, but I also know he would benefit from this as he would be setting it up (although I have no reason to distrust his opinion at this point).

Has anyone had actual experiences with setting one up at first vs. later or have or have any personal anecdotes? Any "I wish I would have..." stories?I know one argument is that why would I set up an entity to protect something I don’t even have yet.On the flip side, I see the benefit of being covered from the start.

I have also heard that financing is hard to get on SFR as an LLC.To that one might say, "well apply for financing in your name and transfer ownership to your LLC!".To that I would say "I have heard that may trigger the dreaded due on sale clause in the mortgage agreement…bad things!".

Help!

Thanks,