Investor · Pensacola, FL · Member since 2015 · 23 posts · 2 votes
As I continue to grow my personal portfolio I am now considering starting an LLC to put my properties under but there are many variables so I am asking for help.
Closing in an LLC makes your rates higher than closing in my personal name so this makes a deal less valuable.
Closing in my personal name does not have the protection that an LLC has, I can do a quit claim deed over to the LLC after closing but I have to pay the taxes all over again and I take a chance of the bank demanding immediate payoff for changing the deed.
Is an umbrella policy over my properties adequate protection for my assets?
said good, fair, honest practices go a long way to preventing lawsuits. Umbrella insurance is cheap as it only insures the top tier, above your current policies.
An LLC does offer other protection, but many are worthless as they are underfunded, co-mingled funding, and an alter ego for the owner. There are many cases where the veil of the LLC has been pierced, so the LLC exercise could be a waste of time and money in some cases.