To LLC or not LLC? That is the question.

[Emily Tyler]

Hi everyone, my husband and I are starting to do our research to get started in REI and we're very excited about all of this. The question we are having the most difficulty answering for ourselves is whether we should start an LLC and operate our rental dealings through this as an extra layer of protection for our personal assets. Does anyone have any experience or opinions in this area. Thanks so much!

[Melissa Nash]

How are you financing? If you plan to use a conventional loan (the lowest rates, and easiest loans to get). You can't put the property into your LLC legally (there is a grey area that investors try after closing) Check the fine print on your contract, or ask your lender to confirm, but this is most common. If you are really wanting an LLC then you need to get a NON-conventional loan. You can open and LLC for banking and ease of tracking your properties- I have several in Wyoming bc its easy, cheap, and very privacy protected. ($180) to form I think. Then I get a FREE EIN from the gov then take all the docs to my bank (wells fargo) and thats it. You can use an umbrella policy for protection and also no equity is a great form of asset protection...who wants your debt....no equity on paper = no value. 

NOTE: I am NOT a CPA or attorney- please consult with them about what is best for you and what you need to protect. These are just a few personal thoughts. Feel free to message me if need anything else.