3 way Partnership, go the LLC route or not?

[Tyler B.]

Hello BP I hope you are all having a good day.

Myself and two others recently discussed forming a 3 way partnership to start investing in real estate properties. We are looking at acquiring SF/MF homes as buy and hold rentals. We all have been discussing whether or not to create an LLC and go for portfolio lender financing, or apply as an individual to traditional lenders (and buy an umbrella insurance policy)

To my understanding there are pros and cons to going each way. For the LLC we would have asset protection, but would have to pay a much higher rate

Another thought that came up was buying a home from a traditional lender and moving it into the LLC. From the research I did, this seems to be sticky and can have a bunch of different issues.

Can you please provide any advice/suggestions for us?

Thanks!

Tyler