Does Financing Under an LLC Protect Personal Assets

[Trevor Sambrano]

My partner and I are new to real estate investing and would like to mitigate our risk in regards to our personal assists. We are in the process of forming an LLC, and will each be funding our business account under the LLC's name which will be used as our operational/ rehab costs for our flipping projects. For at least our first few flips, we intend to finance the purchase of the properties, and only use our LLC's account to fund the rehab costs.

My question is, is there a way to receive financing ONLY under the LLC and protect our personal properties and assets, and if so, which is the best way(s)? I remember James Vermillion mentioning in show 23 that he financed through a small local credit union under his LLC which I found to be fantastic! However, he also mentioned that he and his partner had to cosign personally, which would in my eyes put his personal assets liable if things went south. Also, it seems that cosigning for a loan under the LLC would be considered comingling, and thus take away the protection of the LLC if things didn't go as planned, am I wrong? Unfortunately, I am not entirely savvy on the financing of real estate under a business entity, and the protections offered??? Basically, I would like to know if anyone has any advice on how to become funded strictly under the LLC, and not allow my personal assets to be touched if things in the business go south. Thanks!