When to put rental properties in an LLC ?

Question

In NH I own 3 condos , two multi families , 1 mobile home , and currently own the mortgage on a condo I sold. The 3 condos and one 3 family are owned outright. My question is should I ? Or how important is it that I put my properties in and llc ? If need be what does this cost and or change ?

Also , I find that the banks are being a pain in the but and require way too much information now days ! Thanks

Also , I find that the  banks are being a pain in the  but and require way too much information  now days ! Thanks

Ned Carey · Answer

Personally I wouldn't own that much real estate without an LLC. Whether an LLC is the best choice for you is a complex question. You might check out some of the books or website of NOLO Press, self help legal books. I don't suggest you do this without legal advice, but it will help understand the choices, pros and cons.

Banks will be much tougher on LLCs. You need a commercial loan to finance properties in an LLC and this means many traditional mortgage products will not be available to you. Interest rates and down payments will be higher

The cost will depend on state laws. You may have to pay transfer taxes on all properties and you  may lose your title insurance unless you get a reissue.