LLC or Individual for Rental Loan

[Christopher Nemlich]

Hello,

I'm going to hopefully be purchasing a few turnkeys properties in the near future using DSCR Rental loans (is there a better name for these?). I've watched and read a lot of the negatives of using an LLC as an individual investor, and it seems to make sense to me to skip the LLC and use umbrella insurance instead. Any concern with doing this if I'm going the rental loan route?

For background, I'm self-employed for the next year so can't go the conventional path.

Thanks

[Todd Powell]

@Christopher I have done both. LLC route you have to do a separate tax return as its a "business". My accountant wanted $1200 a year for that, so after speaking with several investors, I think being in my own name is fine. Namely, unless you are a very negligent person, you wont get sued. One lawyer I know, who is also a RE investor, said people who actually get sued were sloppy landlords and the average award amount was a few thousand. I chose to get a 2 million umbrella on top of my normal property ins. This ensures safety and avoid the LLC route. The only times we use LLC's is when we have partners, which makes better sense. Hope this helps and happy investing!