Posted by David on November 22, 2000 at 18:47:00:
Your lender is more or less correct. You might be able to take title in your LLC/Corp name, but probably you will personally have to take on the note. Further, if you don’t keep clean distinctions between your LLC/Corp, the theory of “alter ego” - that your Corp is just you under another name - might eliminate any protection you think you had anyway. Liability insurance can give you ample protection without putting properties in a LLC/Corp.
LLC/Corp is good for formalizing working agreements between 2 or more people at arms-length. You might not find it a benefit for properties (rentals, I presume) you hold for yourself.