Personal or LLC

[Andre Ross]

I am purchasing my first property fairly soon. Wanted to get a little help on if I should purchase it under a LLC or under my name. Thx

[Jean Bolger]

If you are planning on getting a loan for the purchase you should check with your lender before going the LLC route, especially if it is a standard residential loan. Most lenders will only make those to individuals. Buying in the name of an LLC could necessitate using a commercial loan - much more expensive. Also, be aware that switching the title over to an LLC after the sale could potentially activate the "due on sale" clause in a mortgage agreement.

I am not a lawyer (disclaimer!) but I think most people are fine holding properties in their own name until they have amassed quite a bit of a portfolio. Just make sure you have adequate liability insurance. How much liability insurance you need just depends on your net worth. An additional umbrella liability policy from your insurance company is very inexpensive and probably provides better protection than an LLC.