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Question about rolling an STR into an LLC
I've had my property about a year, and I'm considering putting it into an LLC. I know people have strong feelings about this and some will wonder why I haven't done it already. I know some others might say it is overrated. I have what may be a dumb question. If I do put it into an LLC and I want to do some upgrades and renovations, can I get a loan to my business to finance that? Anyone have experience with this?
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#1 Short-Term & Vacation Rental Discussions Contributor
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- Greer, SC
Reasons why you don't need an LLC:
You likely have a mortgage which protects you.
You should have insurance which protects you.
Moving your property into an LLC could trigger your mortgage due on sale clause.
LLC'S can give you a false sense of security because a good attorney will likely find a way to pierce the corporate veil.