Is it better to invest through an LLC if I'm licensed?

[Kian Tajadod]

I am licensed, and have gotten advice that it could help to form an LLC to invest through. What are your opinions, or what are you yourself doing? (Texas) I'd appreciate any feedback, thanks!

[Jim Cummings]

@Kian Tajadod. The real obstacle in using an LLC, whether Licensed or not, is you will be getting a Loan in the LLC name. This will be a commercial loan, probably 5-7 year balloon, 20 year Amortization Schedule, etc.

If you get the loan in your name, you can get FNMA, FHLMC rates, slightly higher than personal Loan Rates (today probably in the 4.75% - 5.00%) and a 30-Year Fixed Rate.

Unless you are have a number of properties already, I suggest buying in your name, and then buy an Umbrella Insurance Policy to cover any increased Liability you may perceive. You can get an Umbrella Policy for $2-$3 Million for approximately $500 Year. 

An Umbrella Policy is also something you should have as a Licensed Agent, and transporting clients in your vehicle.