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Updated over 9 years ago on . Most recent reply
SELF MANAGED LLC = NO ASSET PROTECTION?!
I'm getting ready to go to closing for my first rental property and I am terribly confused.
Facts:
-I am purchasing a single family rental property with a conventional mortgage from my bank.
-I have created a Pennsylvania LLC in my wife's name with her as the only member.
-The loan and property will be 100% in my wife's name. (The reasoning for this is that she is a PA resident and I am not)
-My name is no where on the title, LLC documents, or mortgage.
-The bank will not allow us to put the property under the LLC because that would require a commercial loan.
-My wife and I were each involved in an auto accident in the last 3 years so we are unable to qualify for an umbrella insurance police.
Question:
How can I best protect myself from lawsuits? Is it true that an LLC provides no asset protection if you self-manage the property? If the LLC is in my wife's name and I manage the property does that count as self-managed?
Thank you!!
Most Popular Reply
![Walker Seid's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/181773/1621431503-avatar-texasranger.jpg?twic=v1/output=image/cover=128x128&v=2)
you might just get a good landlord insurance policy on the house and be fine