this is becoming a problem with my lender.if you own a lot of rentals and do not pay for them in cash, but with mortgages, do you:1. leave them in your name and get a big umbrella policy.

Buy the Million Dollar Umbrella Policy.

They may know of other independent clubs that aren't affiliated with the National REIA umbrella organization.

If you are concerned about our litigious culture over here (and that's probably a valid concern) then get some "umbrella liability" insurance coverage.

Then get a personal liability umbrella policy that kicks in if the corporate veil is pierced in any suit.

I was talking to our banker about possibly putting up a spec and the insurance requirements and I was a little confused by his answer as he indicated that I was lumped into my consultant's umbrella policy while I pay for and carry the builders risk.

The personal liability or umbrella policy kicks in after the property liability has been exhausted.Hope this answers your questions.

There are pros and cons of LLCs:Cons: Need insurance (including umbrella policy)You are restricted to commercial financing; for me that is 5-5-5 ARMs (total mortgage due in 15 years max)You file two tax returns (1 LLC, 1 Personal)Pros: Depending on your state, an LLC offers protection to the assets outside of the LLCLLCs are pass-through tax entities, meaning that any taxes pass through to your personal tax returns.

With PM expenses come out to be 47%.Financials:Expenses in a year- $9339 this includes %12 for PM and 18% Maintenance and CAPEX.Gross Operating Income less %5 vacancy (average around here) is-$19479Realtor told me that the seller would entertain offers from 105,000 He said "anything can happen".This deal seems to be solid, I just wanted your options on the deal and the age of the big ticket items.I believe I will keep this under my own name and get a very large insurance and umbrella policy.The other question I have is, about lending.

Also get umbrella.