Purchase in my name then transfer to LLC or buy with the LLC?

[Nathan Bruce]

I am preparing to purchase my first rental property and have a question for the community. Asking the same to my accountant and will post his answer as well.

Should I:
1) Purchase in my name using a personal bank loan then transfer title to the LLC

or

2) Purchase in the LLC name using a commercial loan?

Background:
- I need financing for the purchase.
- I have a registered LLC.
- I have pre-qual for a personal loan and getting the actual mortgage approval should not be a problem.
- I have not talked to a commercial lender yet.

Pros/cons welcome. Thanks!

[Ali Boone]

I don't recommend doing the LLC route, especially for only one property. Definitely get an umbrella insurance company, but that's it. A lot of people are fooled into thinking they need the LLC when in reality it just ends up costing a lot of money, lenders rarely lend to LLCs anyway, and the umbrella insurance policy will give you the same asset protection as the LLC.

I thought I needed one for my properties and did tons of research and asking around, and all I came up with is that there is no benefit to it. At least not in the beginning stages. As a beginner, it's tempting to over-think throuhg everything. LLCs being one of those things. Just worry about learning the ropes of rental properties first.