BiggerPockets

Yes. Definitely try to buy in an entity name, like an LLC.
If you have to buy under a personal name for lender's request and guarantee, you should transfer the property to your business entity soon after closing.

Chelsy,

I would not do it for a number of reasons, but Be careful not to get too complicated, it sucks for your tax returns.

Just open an LLC and use your attorney as your agent of record. this will hide you from just about everyone and protect against law suits.

When someone is going to sue you for lead paint, a car wreck, etc.... The first thing an attorney is going to do is look you up on public records to see what you own. If you own a bunch, the attorney will do it on contingency, if you look broke, most likely that plaintiff will need to give up a retainer. This may stop further action.

I use a s-corp to do my flipping from. The reason I will never by in my own name here is because the city likes to go after owners of properties with code violations. If you own in your name they may issue a warrent for your arrest if you dont fix violations and may go after you financialy as well. If your incorporated you have much greater protection and they might not bother you as much. First 2 houses I owned in my own name but now I have a llc for my hold rentals and s-corp for flips. I would not stress about it on the first deal. If you flip it and do well and want to do another then I would Incorporate.

We bought a property using our personal names on title. I wonder are we taking too much risk?

Due to we encountered a lot of issues, I starting to think of how to protect ourselves.

A lot of flippers in AZ use their own name because they can pull permits without a GC that way. It may not be the right thing to do but a lot of people do it.

The answer to a question like this should always be 'depends.'

What is your tolerance for risk? What type of insurance do you have? What are your intentions with the property. From my experience, those most concerned with asset protection are the people with the least amount of assets. A local investor has hundreds of houses and apartment bldgs in his own name. I have another investor friend who owns unbelievable amounts of real estate from the ground underneath international franchises at major intersections to mobile home parks with hundreds of units.

I also know investors with 1 house and more corps, LLCs, and trusts than an attorney would know what to do with! As Silvio stated above, if you intend to sell the property soon, your pole is already in the water, why stop fishing now? If you are holding the property long term, a simple title holding trust and good insurance are quite acceptable. If the property has considerable equity, you may consider an LLC.