re: Real Estate Investing......... New update pg 7

I feel the need to speak up to a couple points made in this thread, especially the absolutes ("you never get this" or "that's impossible")

I have 14 rental units in Baton Rouge consisting of condos, SFRs, and an 8plex. Been investing since undergrad and I'm 33 now.

ALL of my properties are in LLCs. This is basic step one. I'm an attorney and have seen liability cases from accidents at property almost bankrupt individuals. If properties are in a LLC or corporation then your personal assets are shielded from liability (unless perhaps gross negligence or intentional misconduct).

Regarding getting a loan for a llc: I have never had a problem getting a loan for an LLC. The down payment and interest rate will be higher and probably variable but that has more to do with the fact that your buying an investment property as opposed to primary residence. More risk to bank that you will just walk away if things go south.

And transferring a property under a personal loan to an llc also shouldn't be a problem because 1)the bank maintains first lien on the property and can foreclose if the note isn't paid and 2) if a property is transferred to a llc the individual remains liable on the note. Just because you transfer ownership of property doesn't mean you you change guarantees under the mortgage. So from the banks perspective a) they still have title on the property if note isn't paid and b) you are still liable under this original note. Perhaps you need to alert the bank of the transfer but they will have no problem if you are transferring to shield personal liability.

Anyone else have other stories pertaining to this? Always curious to learn more.