Purchase in my name or an LLC...?

2 Replies

Hello everyone, 

Navin here. I have to say, I have been following you guys for a little while now. Thanks for the info. Need less to say I have had an interest in Rental Properties for quite some time but I never set foot in that direction, until now. After reading a ton on Biggerpockets.com, I have decided on a duplex in Jersey, which will generate about $800 in cash flow and which is not bad for a first timer. I have figured out this much, that I will need a 25% down payment, I would like to finance through a bank for better interest rate, rather than Private Lending. But, the thing I'm not quite sure on is if I should buy the property in my name or buy it an LLC business name, after registering an LLC in NJ. Do you guys have any input on this? When you guys bought your first unit did you buy it in your name or in your business name?

Thanks a ton. Navin H.

Hi Navin -

We purchased our property in our personal name to help get us up and going with a conventional loan. The lender we were working with didn't lend out to businesses BUT if you have the ability to snag a loan in an LLC name, then you should definitely do it.

LLC's will protect you against liability if anything were to happen. Definitely go that route if you can.

Originally posted by @Taylor Hudgins :

Hi Navin -

We purchased our property in our personal name to help get us up and going with a conventional loan. The lender we were working with didn't lend out to businesses BUT if you have the ability to snag a loan in an LLC name, then you should definitely do it.

LLC's will protect you against liability if anything were to happen. Definitely go that route if you can.

Thanks a lot Taylor.