What’s the point of an LLC for new investors?

[Daniel DiCosimo]

I know the subject makes me sound dumb, but I'm serious. It's best practice to set up an LLC to protect your personal assets, but from what I've found, it's nearly impossible to get your first property under that LLC without it having any credibility. Banks won't give it a loan and you don't want to run the risk of transferring the title from your personal to the LLC and the lender calling the mortgage due. So even though I have an LLC set up, it has no affiliation with my property since it was a personal loan.

I'm just kind of frustrated that every smart lawyer/investor/business person tells you that setting up an LLC is the wise thing to do, but the system makes is very difficult to accomplish.

I’d appreciate any testimonials. I’m starting the search for the second property and I’d like to do things different this time around.

[Nate Marshall]

Why are you asking banks for money? The lenders who are in real estate require an LLC or Corporation. You should have a series LLC. A Master LLC, one for a holding company that owns the property, one for each property you acquire and even specialized companies like your own management company (for acquisition and asset management), construction company and I know one guy who has a financial services company that just writes the checks for all of his companies.

You are protecting yourself, your properties and wealth.