What is the best way to buy rental?? - Posted by Nick

import · October 8, 2003, 4:01pm

Posted by phil fernandez on October 08, 2003 at 18:19:24:

I always buy my rentals in a LLC. I also carry insurance which the bank will require anyway. Bronchick has some good articles concerning how to hold property in the How To Articles section of this site. Check em out.

import · October 8, 2003, 4:01pm

Posted by Nick on October 08, 2003 at 16:01:43:

I am about to buy a rental house that I found. I will be going to the bank to get a loan for about 70K. What is the best way to purchase?

I could let my Corp buy the house. I have a corp setup, however the corp has no assets yet. Of course the corp has no income either. So I will guarantee the loan personally. My income ,credit and assets will allow me additional purchases.

Or should I just buy the house in my name and put it in a land trust.

Or should I start up a LLC and let it buy?

My overall goals is to try to protect myself from liability problems with a slip and fall type accident. A friend of mine has told me to just buy the house in my name and go get a 3 million dollar umbrella policy and dont worry about it.

Thanks

import · October 9, 2003, 6:25am

Re: What is the best way to buy rental?? - Posted by Antoine (GA)

Posted by Antoine (GA) on October 09, 2003 at 06:25:34:

I think you should buy it through a LLC and place in in a land trust just to make it more difficult for any creditors. Your LLC can carry an umbrella policy as well.