LLC and HELOC Question

[Kyle Sterner]

Hi BP,

I am beginning my real estate investing experience and wanted to say Hi and thank you. I have been reading a lot of forum posts over the last several months and trying to soak in as much knowledge as I can. I plan on utilizing the BRRRR strategy to grow a nice portfolio. I own my house and will be using the equity to purchase and renovate properties.

I do have 2 questions that I am looking for feedback and opinions on.

1. At what point do I need to consider forming an LLC? I plan on funding everything myself w/o taking on a partner. I have been told by several people on my team that an LLC is not necessary, but I was curious if there is a point where it will be, or will be beneficial.

2. I know there is a limit to mortgages I can have in my personal name. Does that also apply to Home equity loans? Am I able to take a home equity loan or line or credit in place of a mortgage to pull my money back out and save on costs? I was able to pay off my primary residence in 4 years by taking out a HELOC after getting the property to 80% LTV, and putting all of my income into the HELOC and paying bills out of it, so I am familiar with how they work.

Any feedback is appreciated, real estate is a new adventure for me. I have spent 15 years in the automotive sales industry and I am looking to screw my future away from an industry that is slowly dying.

Thank you,

Kyle