All Forum Posts by: Forrest Hayashi

Hi @Forrest Hayashi

Same disclosure as above - I am not a lawyer. 

I ran into this same situation when I started. I bought 3 duplexes in my personal name but ran everything through my LLC. It was difficult to get lenders to lend to an LLC with no income, so I definitely understand. I did everything as if the LLC owned it (even taxes) and then eventually moved the deeds over to my LLC through a real estate attorney. I'm not sure if this is the right or wrong way to do it, but this is what worked for me so I thought I would share.

@Chris K. has talked about this in a few other threads. 

If the property is deeded in your personal name, the rental license held in an LLC will make no difference to your personal exposure to liability. If someone trips on your sidewalk any lawyer taking the case will immediately search public records and bring the deeded owner into the case. Probably your LLC 'managing' the rental as well. So you'll still personally be a named party in the case.

Creating an LLC to manage the property is probably more trouble than it's worth. You can still get anonymity with a virtual mailbox, Google Voice number, and LL-specific email address used for RE activities only. Do this along with a big fat GL insurance policy and umbrella on top of everything.

*mandatory " am not your lawyer" disclosure, this advice is worth what you paid for it..