Holding LLC-- Property LLC structure and Financing

[Mike Jones]

I am in the state of MA, and have 3 rent properties in my name and looking to move them into a LLC. Many talk about forming a WY Holding LLC owning a MA property LLC at 100% structure because of anonymity and charging order protection. They dont want their names on the property LLC etc. Is all that necessary? Specially for those like use who are just starting out, not millionaires and are in need of financing.

I will be single member owner.

I did speak to 4 local lawyers, and they all have different opinions. Some believe in it and want alot money to form the LLCs, some say if and when there will be a major lawsuit, lawyers will always find ways to get to you. This particular lawyer advised to just do a MA property LLC and get an umbrella policy that will cover the liability.

Did also speak to 2 small community banks about the structures, one didnt understand the holding and property llc structure and wasnt familiar with it, the other said it was ok but wasnt sure and will need to confirm that WY holding wont be a problem, because they only lend to just few states.

I want to hear how people are set up, and those who are setup with WY holding/property llc structure, did you have hard time getting financing for buy and hold properties? Will also be doing fix and flip, BRRR etc. Financing is big deal for me so I need to structure in a way that will not affect that.

I am also planning on adding partners to the equation when an opportunity knocks at my door. How would that play with either of the structures?

Thanks in advance for your input.

Stay safe and healthy out there.