Structure a deal in personal name or LLC?
Hello BP!!
I am planning to buy three investment properties over next 2 to 3 weeks in Indiana (My first investment properties - Hurray!!). I will financing these properties by putting 20.0% down the borrowing the remaining. Speaking with few lenders I understanding that the properties needs to be under my name and not a LLC. Reading few forums here on BP always recommends to buy the property under a LLC to protect your personal assets and shield from liability arising from the properties.
I wanted to check how does every one else structure their deals and what the pros and cons are of having properties under personal name or an LLC.
Other option i have been told is to first get the property under my name and then transfer to LLC or series of LLC. However, i am not sure if doing this would trigger any sort of "due on sale" clause. Or will no problems arise assuming that all mortgage payments are made on time, despite title now being vested in an LLC rather than in the mortgagor's name? Also, will this transfer jeopardize my title insurance?
Any advice on this will be very helpful. I am sure this has been discussed in lengh on BP and if anyone can point me to the right direction or link - that would be great to.
Thank you in advance for all your help
Tushar Shah