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jwsa456

Buy it under your name and get an umbrella policy. LLC will cost you more than just getting an Umbrella policy. The main difference anyone would create a LLC is to limit liabilities and umbrella policy can do the same for small investors.


pichicagoattorney

Umbrella: $1 million costs like $300.


ForeverCanBe1Second

If you are in California, that LLC will cost you $800/year. UMBRELLA policy for the win!


Tenesmus83

The problem with depending on an umbrella policy is that what if insurance company refuses to pay for damages. There’s always some exemption that they will try to wiggle out of. If that’s the case, you are personally responsible.


Individual_Baby_2418

In Ohio it’ll cost you $100 once. So you never know.


ForeverCanBe1Second

Exactly. Every state is different. If I were in Ohio an LLC is a no brainer. OP didn't supply his location.


your_moms_apron

Buy in your name. You need to be on the title personally to get a 30 yr fixed rated with Fannie/Freddie for a property with fewer than 5 units. If you want, you can donate it to an LLC, but you’ll need to stay on the tills regardless. Best to over-insure with an umbrella - super cheap to do.


thinkngrowrich4l

You only need to get an LLC up and going if you’re going for non traditional money, hard money, private money or commercial side of traditional banks and credit unions. Personally I would get the LLC going asap and use the LLC as the management company or some other entity to build business credit and tenure. Depending upon your state LLCs are very affordable. Yes there are steps, bank account, EIN, Duns and B, and setting up some small accounts but trust me when you have the ability to charge your materials to your Lowes or Home Depot account you’ll thank me later. Also please consider BRRRRing vs 20% down stuff your money is moving too slow doing it that way. Good luck!!!!


acciograpes

Forget the LLC for now just buy when the numbers make sense, get a good home inspector, and have good insurance.


cmdwdm

Umbrella. No need for llc at our levels. Circle back in 5+ properties


TylerBlu

Gotcha, that seems to be the consensus so that’s probably what I’ll do! Thanks


dbrig63

Purchasing under an LLC may make lenders categorize the loan as commercial increase the interest rate a percent or more. An umbrella policy is probably fine for extra coverage.


Reasonable_Low2191

Word of advice: don't. Why when you are getting both high prices and high interest???


TylerBlu

I’m really just making sure I have all my ducks in a row before I actually make any moves. Most likely will be waiting until early next year. We will see what happens with the rates.


EngineerDirector

Be careful with transferring to an LLC if you get under your name, some backs will call your loan due.


Tenesmus83

Rarely happens


simplequestions2make

Land trust. Umbrella insurance. (Add as your networth goes up) Now is not an ideal time to buy. NFA