Setup LLC (with mortgage) to run real estate rental business

[Corinna Lo]

Hi, all

I have a newbie question that I need help on. I need to understand this LLC thing well. I read here and there, talked to many people, and the bank. I don't seem to get a good grasp of it.

I have been told time and again to setup an LLC (S Corp) for real estate rental business - for liability protection, and for tax.

When talking to the bank about the LLC, they don't want to loan to it.  They want the loan under my name (well, I still have a full time job. The LLC will have no asset I guess).  I talked to a realtor, and he said he and his wife have an LLC together.  Their rental property is still under their names though because the bank does not lend to their LLC.  So they are using the LLC for bookkeeping.  That in my mind does not seem to make sense because LLC is supposed to protect one from any liability.

What is the proper process so setting up LLC for real estate rental makes sense?

First, make an offer on the property, me as buyer?
Get the mortgage under my name?
Then what? change property title to LLC?
What about the deed of trust?  It was between me, and the bank, and the trustee... now the LLC instead of me?
Would the bank agree?

How do you do it? 
Can you please give me some advice?

Much thanks!!!