Buying under personal names or LLC?

[Eugene Carelli]

Hello! I recently started an LLC with two other investors and we are looking to BRRR SF homes in the Philadelphia area. We wanted to create an LLC for each property we buy so that each home is protected separately. Since purchasing a home with an LLC can only be done with a commercial loan we were considering buying it in our personal names and later transferring it to the LLC. This would give us a better mortgage rate but incur a transfer tax (Philly 4.02%). I wanted to see how other investors were doing this and see if there is a preferred method. I know things may vary a little state by state.

Secondly, if we do buy the home in our personal names and never transfer it to the LLC, we can still run the rental payments through the LLC. This should build the LLC's credit but leave the home less protected as it is not under the LLC. Does anyone do this for their properties?

Any help would be appreciated.

Gene