Entity for expanding portfolio?

[Aaron W.]

Wife and I currently have three small multifamily homes (fourplexes) and are looking to expand our portfolio. We purchased the three properties with cash and are looking at creating an LLC to move the properties into.

What is your experience establishing an LLC to put your current and future properties? There are different types of LLCs and I have heard that we need to establish them correctly. What have you done that has worked?

I've also heard of others not creating an entity and purchasing umbrella insurance in case of being sued by tenants. Thoughts on this?

Looking forward to your thoughts and advice.  Thank you in advance for your help!

[Greg Dickerson]

@Aaron W. you should speak with an attorney and your accountant to decide the best overall structure for your business and tour properties.

Generally most sophisticated investors and developers with multiple properties and companies  will have one main management entity that operates all of the properties and businesses that are held in a single asset entity or special purpose entity.

A simple insurance policy will not suffice to protect you and your assets.