How do I protect myself with an LLC?

[Vick Ghadimi]

Hello All,

Thanks for a great forum. I am so happy to have this resource at hand to learn from experts.

I just got my first 2 rental properties (SFH, Duplex) in Florida.

After getting conventional financing, I asked my lender if I could transfer the properties to an LLC to stay protected. I was told this is not an option, and it's stated in the loan agreement that it cannot be transferred.

Are there any ways around this? The only thing I could do, according to them was to refinance.

Thanks

[David Dachtera]

@Vick Ghadimi,

Yes - about the only way would be to have the LLC buy it from you.

An LLC alone is not good protection, though it's better than holding in your own name. You need a business entity structure where the entities are owned by each other, not any human person. They also need to be fully insured.

If you own in your own name, remember that even fully insured, once litigation is brought, the discovery process will make your ENTIRE ESTATE public knowledge - the "vultures" WILL descend!