Buy personally or make LLC (company)

5 Replies

I am about to purchase my first rental home. I do plan to purchase more in the future. My question is, when starting this, do I buy personally or start a LLC? Commercial loan rates are higher than personal, however I want to protect my personal asserts as well. And I want benefits tax purposes wise. (I am in Louisiana.) Any suggestions/advice?

Financing is cheaper if you do it personally vs using an LLC. You probably save 1 point on the interest rate versus commercial lending. You can overcome the legal risk of not having an LLC with a large Umbrella Liability Insurance Policy, if you are worried about that.

I started off buying the rentals under personal name, then Quit Claimed to an LLC once I had a couple.

No LLC for me if buying residential property with financing.

There is a thread now going on accenting the multiple problems with that and using a lame deed to transfer like the quitclaim. "Transferred to an LLC and bank is giving me issues." I think it's called.

Cash buy or commercial property? LLC all the way. Depends on asset type and whether financing is involved or not.

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