RENTAL FINANCING QUESTION FROM A NEWBIE

[RICARDO RUIZ]

I was told by a co-worker that banks would not look at my personal home when financing rental units? And that banks make rental financing decisions based how much cash flow the rentals will produce. This does not make sense to me because I would think that the bank would go after me personally and any assets I have if I where to default on a loan that I received for rental units.

I assume this why people put rentals/properties under corporations or LLC? So your personal assets are protected ? Do LLC's protect against loan defaults as well as slip and fall type law suites ?

Thanks
Rick