Clairification on when to form LLC

[Adam Widder]

On BP, the podcast and many "starting out" discussion I've read or been told that when you start owning rentals for your first few properties it's okay to have a large umbrella policy for asset protection. However, once you accumulate a certain amount, at what time should you restructure to an LLC or S-Corp?

I realize this answer could be different for everyone.  Please provide what you did based on your experience or legalities? My goal is to have 10k passive, so eventually I'll need to structure, but at what point? I feel as if everyone says that but doesn't give a concrete example.

Thanks fellow BP members!

[Brittany King]

I think it depends on how your going to finance your deals. If your using the VA or FHA loan you have to wait one year if I'm not mistaken. You have to also make sure your lender will allow the property to be put in an LLC because you don't want to have to worry about an acceleration clause.