LLC or to own properties in your name

[Jared Siddle]

Is it best to own the properties in your own name and then have an LLC or other tax structure rent them out or just have the LLC own and manage everything, therefore, limiting any liability to you personally?

Are there any draw backs of an LLC owning a property? - Getting finance?

[Brian Bradley]

@Jared Siddle you do not want to own anything in you own name. You should transfer your property into an LLC or Series LLC or some sort of holding company that is connected to a land trust. Then you can also create a property management company to collect rent and hire/contract with vendors etc if you really wanted to have separation. It is hard to get financing for the first 3 years with a LLC until you have a track record that banks / lenders can trust. But you will get a better rate by getting the mortgage in your personal name, then the next day after closing transferring the property into you LLC/Holding Company. The transfer would not invoke a due on sale clause since banks have not done this in god knows how many years decades, plus the transfer is legal and into your Land Trust just like all other trusts, it just happens to be that the land trust is connected to the LLC. The banks know this is for AP purposes.

If you want to talk in more detail, IM me. I am an AP Attorney.