LLC vs. Personally Insured?

[Jared Smith]

Just bought two 4 plex properties as well as a duplex in my name. 25% down on a 30 year mortgage. All of this sounds like what has been done countless times and is talked about on BP podcasts all day long...

However, as I research more, with an LLC you now cannot use a 30year amortization, but a 15-25 year amortization and a higher interest rate?

So do all investors with LLCs just not being up that they cannot do 30year mortgages? Or are these investors NOT putting their properties into LLCs?

Trying to decide if I should be using an LLC to buy properties or simply insure myself with higher coverage?

Thanks!

[Todd Powell]

@Jared Smith I have contemplated all of this as well. I have several 4 plexes just in my personal name, and also have a 5 plex and 8 plex in a LLC. The main reason for the LLC was we are 50/50 with a son and his wife. The downside to a LLC is you have to file a separate tax return for each "business" or LLC. Locally, my accountant wanted $1200 each, but my son found someone in Portland for $400 each. I have talked to attorneys and I know one that has lots of RE and he does not even have properties in LLC's, as he said you have to be severely negligent to get sued and lose. I think LLC's are a bit overrated, as you can get umbrella insurance and save lots of money. One person said you can also have LLC to put all properties into, or separate ones.