When to setup an LLC for rental in Memphis, TN?

[Bobby Lopez]

I'm looking to purchase a rental property in Memphis, TN. My question is when and how should I form my LLC?

This will be one of many more rental properties being purchased, so ideally planning for a larger portfolio.

Should I form it before applying for the loan or how does it work? Also, what are the costs associated to it?

Any advise helps. Thanks in advance.

[James Wachob]

@Bobby Lopez if you are buying using leverage you may need to purchase in your name. The Fannie Mae 20% downpayment loan program will not allow you to purchase in an LLC. Many investors buy in their name then transfer to an LLC +/- 90 after closing. Seek legal advice regarding this strategy. 

If you need a good lender or closing attorney I am happy to help. 

James