LLC or Umbrella Policy, HELP!

[Jonathan G.]

Ok. We have just signed our first contract on a SFH! We are so excited.

Here is a decision we have to make and really need your advice. Since we started this our plan was to open an LLC and put our rental properties in there. As we started doing research on financing, we are finding it is VERY difficult if not impossible to find a lender that will finance to an LLC (even if we are the guarantors). We have gotten a lot of conflicting info. Obviously our lawyers want us to have an LLC and that would give us the most peace. We know many of you have LLCs. How did you do it? We have heard that some people that run into this issue close the deal and then move the property into their LLC. But we have heard that doing this puts you at risk for your loan to be called.

Another option is purchase a $1 million umbrella policy that they use to cover liability risks.

We do not want our family, our home, our cars, etc to be at risk. We want to be smart. But we are about 5 weeks from closing and need to lock in a lender. After meeting with many bankers it looks like we can get loans but getting them into an LLC seems to be the issue. Any advice?