Assuming they can’t pierce the corporate veil in proving the LLC is in fact an alter ego of yourself .

@Justin Pierce  Thanks for this!

I don't think an LLC would help here- If that house is worth $100k and he has $500k of medical bills it's very likely that corporate veil can be pierced. 

Hello Folks,We have decided to hold an investment property in an LLC and are discussing financing strategies for the property and would like some advice.Option 1: Get a commercial loan for the property under the LLC name and most likely pay a higher rate.Option 2: Get a conventional loan under our name and transfer the property to the LLC.We have heard the risks associated with Option 2 are:The mortgage could be called because of a due on sale clause.The property could lose its insurance coverage.The LLC would not provide the protection we are looking to obtain due to a risk of "piercing the corporate veil" because we purchased it in our name originally.I would appreciate any advice from folks who have first-hand experience with these scenarios!

If you do go to an LLC, make sure both you and the LLC are named.I would recommend reviewing with an attorney to see if the policies having both the LLC and yourself as insureds would be advisable from the standpoint of avoiding "piercing the veil" of the LLC

Anyone have a recommendation for a good Title/Escrow Company in King County and/or Pierce County WA area. 

Also, in my layman's opinion this makes your LLC look like an alter-ego, just as bad as co-mingling to pierce your corporate veil. 

This is the case both in the state where it was created and in the state where you filed a foreign registration.Failure to manage your LLC properly could open the door for a plaintiff's attorney to pierce your corporate veil, eliminating any protections you thought you had from having an LLC.

One thing that was stated that is very important is that if you go with the LLC option you need to be sure to do things correctly so you do not have the corporate veil pierced.

There are two considerations: 1) due on sale clause, and 2) piercing the corporate veil