Llc?

**GoInvestments** · 10-29-2008, 02:57 AM

Hi everyone this is a great site and that’s why I’m asking this here

I am wondering what everyone thinks about using a LLC for investing. I have one property that is doing well in my own name but I am wondering if It would be safer and maybe better to work as an LLC instead of everything being in my name.

Now I have done a ton of research but I’m still not sure. I have been writing a business plan for about 8 months now. I’m just not sure the strategy to use for financing. I’m having trouble seeing how everything will work. One of my main issues now is that I’m assuming I would try to get a 150k loan but I have no idea what payments would look like and the interest rate. The more I look into this the less attractive it becomes. Any help would be greatly appreciated, Thanks!

**AustinBroker** · 11-17-2008, 03:01 PM

Depends on your state laws, but some form of entity can be a good idea. Beware of the tax and legal requirements of entities though. Could be worth a discussion with you accountant and lawyer.

Joe

**agentsranking** · 11-17-2008, 07:37 PM

Investors are using LLC's less than they used to. It is now more common to transfer ownership of the property into a trust.

**VAInvestor** · 01-10-2009, 04:18 PM

Asset protection, some form of it, is definitely a good idea, especially if you own multiple properties. Personally, I am currently transfering all of my properties into an LLC, but am also looking into land trusts - they don't actually give you asset protection, but you do get privacy, so that noone can know that you actually own that property.

Getting loans into an LLC name, though, is harder and harder these days, so it's much more common to buy in your name and then transfer title. You should talk to your attorney and accountant.

**Greg** · 01-12-2009, 05:25 AM

You are going to have a real hard time finding a lender who will make a loan to an LLC. The rules have changed.

**Dave Reynolds** · 09-30-2011, 08:32 AM

Attempting to obtain financing as an LLC is difficult if you do not have a credit history for the LLC. In the absence of a credit history lenders often require that an officer of the LLC personally become a guarantor of the loan, meaning they are responsible for the loan.

Purchasing a property under an LLC does limit your personal risk if you are not the guarantor. One must determine what the ultimate goal is for the real estate investment and which form of ownership will help them in reaching the goal. For most single investors the best option is to purchase the property without a LLC.