LLC vs Umbrella Policy

[Michael M.]

Was speaking to an investor who lives and invests in NJ about setting up an LLC for a rental property, and he suggested that I skip that route and go with an umbrella policy for all of my properties. Any thoughts on this route?

[Mike McCarthy]

@Michael M. There are LOTS of discussions here about that. I'm a nutshell, if you buy in your own name, you will get significantly better mortgage rates and terms. Plus the fact that an LLC for a beginner investor likely won't provide the asset protection many people think it will.

Insurance is an inexpensive protection against liability and other issues that might arise.