Contributing personal funds to LLC

[Ryan Johnston]

Hey guys.  Offer was just accepted on my first property.  2 quick questions:

1. Should I go ahead and form an LLC for this first property?
2.  Is there any issue with me contributing my personal funds to an LLC?  Ex: Sending money from my “day job”, to the business account, in order to fund other deals.

[Mike McCarthy]

If you're planning a single family investment or a 4-unit or less multi-family, I'd recommend not setting up an LLC.

It will be easier and cheaper to find a mortgage on the property as financing with an LLC will force you into commercial loans. Plus, I'd argue that for your first few properties, an LLC wont really help with asset/liability protection anyway.

Of course if you're planning larger MF, then LLC is the way to go since al loans will be commercial.