Going for 2nd Property, do I create an LLC?

[Matthew Stapenhill]

Hey guys! I want to get a second property, but can't decided if it would be better to get an LLC first or not? What are your thoughts? Also, I'm not sure what would be the best way to get the loan for it? Also my first property is already paid off.

[Brian Zaug]

Hey Matthew, a relative of mine, who is in his late 70's now, owned over 20 properties for 40 years and never once used an LLC. He would always get really good insurance on his properties along with a 3 mil dollar umbrella policy which included his rentals. He used to tell me, "just make sure any staircases are in good shape, fix what needs to be fixed and have pro's do the electric". lol. I know that's a bit of an old school way of thinking but he's been through lawsuits, evictions and a fire with tenant injuries and his insurance and lack of negligence kept him well protected. Perhaps lawyers have gotten better these days but just wanted to give you another angle on protection that worked for my uncle.