LLC or Insurance. More confusing than I thought

[Rudy Hernandez]

Hi BP members I have studying and asking questions regarding starting my LLC or getting a GL policy on my rental properties. Well, I asked my mortgage companies and they tell me if I did the LLC it would convert the loan into a commercial one, which means rate and terms change as well as expenses go up. Me no likey. Than I asked about the GL policy with my insurance company and they said it would be like a commercial type policy and expensive. Me no likey that either. I asked around and I have been told that some investors have their rental properties under the LLC but the loan is in their personal name. My question is this, in doing it that way are you still exposed to be sued and the houses now available for grabs? I feel like doing it this way the homes are not really protected. Am I missing something? I'm getting more confused the more I dig into this topic. What's in your experience and btw I am in Texas. I'm sure laws are different everywhere. Look forward to your feedback.