How does one buy 100 of properties under a llc or personal?

Question

Hello i'm a new real estate investor i know some things but this topic has been bugging me.

Say someone has multiple properties i'm talking about 100+ how does one purchase them? do they use personal name to buy it or a business entity?

Some people say it's harder to do the BRRRR with a business entity like a LLC because the terms are not that great.

Any Advice for me? should i buy through LLC? or Personal?

Nathan Gesner · Answer

I've purchased my property in my personal name, then transferred them to an LLC.

An LLC provides you anonymity (if done right) and it separates your investment from your personal assets so you reduce risk of losing personal assets in a lawsuit. The risk of being sued for such a large amount of money that it would impact your personal assets is very, very, very small. The overwhelming majority of suits against Landlords would be covered by insurance. If you want to be extra safe, buy umbrella insurance and it will provide even more protection for very little cost.

Carl Hebert · Answer

I started off by buying in my personal name and even after I formed an LLC I still bought properties in my name for the better financing. I then wanted to pull out some well gained equity and rolled all my mortgages into one loan under the LLC. The unexpected bonus was my personal credit got a boost and I no longer had any long term debt personally. The LLC loans and lines of credit no longer affected my personal credit.

Scott M. · Answer

Conventional mortages will get you 10.  Hard money or private lenders or just plain old cash or dogecoin will get you the rest : )   If you are buying with cash there is no limit.  Conventional mortgages generally do not let you buy in an LLC but some lenders do allow it.

the pros and cons of an LLC is a subject of hot debate here on BP and frankly most message boards.  Passionate people on both sides.  Personally I am in favor of buying in an LLC as it "can" provide some privacy and protection when done properly.

Jon Kelly · Answer

@Allen Zhu The terms (e.g. interest rates) shouldn't be a concern. After 10 properties you'll be financing through commercial loans whether it's in your personal name or LLC. Lenders will perform diligence on your personal finances not just the LLC.

There's no right or wrong way to do it and I wouldn't let this slow you down. Comes down to risk tolerance and personal preference. Either put in your name and purchase an umbrella insurance policy or put in LLC. Some people put 1 property in one LLC. Others put 5-10+ in each LLC.

John Underwood · Answer

I pay cash and put directly in an LLC.

If your using financing the bank will likely want you to put in your name.

Just get insurance and you can add an umbrella policy if your worried.

How does one buy 100 of properties under a llc or personal?

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