LLC vs Umbrella Policy

[Account Closed]

I learned today that I cannot have a secondary market bank loan in an LLC name, so if I want to save on an interest rate as I can with a secondary market loan, I can't inside an LLC (I have to carry it with a bank internally as a portfolio loan as an LLC). Does an umbrella insurance policy cover me the same as an LLC so I can carry an umbrella policy as legal protection? Positives/negatives? If you give feedback, I'd be really grateful if you could please cite sources. Thanks!

[Cole Swartz]

An umbrella policy is still going to have a limit. If that is exceeded, they can go after your personal assets to make up the rest. With an LLC, if set up correctly, they can only go after assets in your LLC.

My personal suggestion would be to set up an LLC, especially if you plan to acquire quite a few properties as it seems you do. I'll just say that in our own direct mail campaigns, we specifically target landlords with a bunch of properties all under their own name. It is often a good indicator they are less sophisticated and less knowledgable about what they are doing.