LLC vs Umbrella policy? (Another one of these...)

[Shannon Vanderweide]

The dreaded LLC vs Umbrella policy question.. again.. Just to start off, I want to mention that I have read through a hundred or so of these posts on this site already as well.

I can't seem to find a local real estate attorney or any attorney that knows a lot about real estate investing and LLC's, which is why I am hoping someone here can point me in the right direction. Originally I had full intentions of creating an LLC as well as having umbrella coverage. Recently I learned that it can cause issues with lenders for future properties and if they decide to call the current mortgages due for transferring them to the LLC..

I have a single family home and a duplex that is owner occupied. I intend on purchasing another single family home in the next month or two as well. All properties have mortgages and will continue to have mortgages until I decide to sell them. Total value on the current properties is roughly 220k. I manage my properties myself and will continue to do so. I also do most maintenance myself unless it is something major.

I have read that LLC's will do nothing for someone who self manages and self maintains their properties, due to the risk of lawsuits.. (Example: If something plumbing not done correctly and I am the one who fixed it, the tenant or whom ever can sue not only my LLC but also myself since I did the work..)

I want to do the correct thing, as I plan to expand further in the next few years, but I am having trouble figuring out what the correct thing to do it.. Can anyone touch on this?