Posted by Conrad on October 29, 2009 at 15:40:21:
In Reply to: To LLC or Not To LLC? posted by Sam Iam on October 11, 2009 at 22:12:19:
LLC would not help the 4 property limit as if the 4 mortgages are against your personal credit and not against your actual business -- all conforming lenders will consider any property whether LLC or personally held against the 4 count.
Oh, that lenders would respect the 10 limit that Fannie reverted to.
To answer your earlier question, I'm not an attorney but I believe that an LLC would separate your personal assets into a separate pool away from your LLC held properties. So a lawsuit could not get your personal assets but theoretically tap into all the assets in that particular LLC.
If you had 4 LLCs (pain really but there's a reason) it would compartmentalize (sp?) the maximum risk to whatever is held in that specific LLC. Basically, you don't run the risk of losing properties B, C and D if there is a major liability due to property A.