Transfer Title of a Property from a Person to an LLC?

[Joby John]

I just bought my first investment property and the title is under our name. Because of liability issues, is that a good idea to form an LLC and transfer the title to company name. Do I have to form an LLC or just purchase a good insurance ( at least a million dollar liability coverage). Thanks John

[Roberto Hernandez]

@Joby John I’m not sure if this applies in your state, but here in Iowa you don’t need an LLC to get 1m coverage insurance. Our insurance agent was able to get us coverage for our rentals without the need of an LLC. As to for the LLC, it really comes to personal preference, in my opinion. The LLC becomes useful when you own several properties outright that way you protect the equity of the properties. Another thing to consider, banks usually don’t give out mortgages to LLCs. So if you are planning on refinancing a property to buy another, the deed would have to be under your name and not the LLC.