newbie LLC and asset protection questions
I plan to buy my first rental property in a few months. I have money saved up. I have met with several bankers. I am learning to analyze deals. I am about to contact a real estate lawyer to set up an LLC and obtain a business license. I will not need the cash flow because I make a good salary. I will plough all of the cash flow back into the real estate company. I understand that losses generated in the real estate company can be used to offset my W2 income and lower my taxable income. Does my LLC have to be a subS so that those losses pass through on my personal tax return or can I accomplish the same thing as a sole proprietorship? My understanding is that I will not be able to buy the house in the LLC because the bank will not loan the LLC any money. I will have to buy the first house in my name, correct because the bank will only loan me money? If I transfer the house into the LLC, there is a risk of foreclosure for violating the do on sale clause, right? How does the house get into the LLC so that the benefits of asset protection can be obtained? Years from now when the LLC has significant equity and cash, then will the banks loan the LLC money so that there is greater protection as the purchase will be out of my name entirely? Thanks for the help.