Updated over 4 years ago on . Most recent reply
LLC or Umbrella Policy?
LLC or Umbrella for buying 1st fourplex? Is it worth it to form an LLC or is umbrella enough for my 1st purchase. If I should start out with an LLC I would like to do so before I apply for the mortgage. Are commercial mortgage rates that much higher for an LLC. Property's asking price is 99,000.
Most Popular Reply
Joshua,
You would not get a commercial loan for a 4-plex because it is under 5 units. This would be a residential MF. In terms of getting an LLC or an umbrella policy that more depends on your risk tolerance. I have LLCs for my properties but they are commercial properties. Where are you buying a 4-plex for $99k? What is the plan for this property? Fix and Flip? Buy and Hold? BRRRR? Your plans for the property will help determine what you want to do.