Thoughts on Starting a LLC

[Thomas Houpt]

Hey Everyone,

I am about 6 months out from starting the actual process of hunting down my first deal. I am renting for another 12 months. I would ideally like my first property to be a house hack (looking for a 2-4 unit building to stay in the residential space and not get into commercial just yet). After reading Garrett Sutton's book "Start Your Own Corporation" it seems like an LLC would be the best way to protect myself from lawsuits and situations of that nature. That being said, I know it can be more difficult to obtain a loan with a business that does not have a financial history. What are your thoughts here?

Thanks,

Tom Houpt

[George W.]

I'm not a lawyer or an accountant, but if it's your first property and only major asset why would it help you? An LLC can still be sued and wouldn't stop anyone from suing the LLC if they had a serious issue on your property. If you had like 10 properties or one that was completely paid off then maybe I'd worry about asset protection.