The LLC isn't an absolute shield. Actually, far from it. It helps, but even then you have to be sure that you operate it properly--keeping finances in it separate from your personal finances, and so on. And make sure it's a multi-partner LLC, if you go that route, not a single-partner LLC.
Second, it'll be virtually impossible to buy an investment property through your LLC. You can buy as yourself and then transfer ownership to the LLC. That can help some, since the property will be owned by an LLC. However, the mortgage will be in your own name. Even if you were able to buy through an LLC, the lender would demand that you personally guarantee the mortgage.
Set up other levels of protection as well. For example, consider buying an umbrella liability insurance policy. A $2 million policy will cost you maybe $350 a year.
Also, look into using a land trust as the ownership device. Some people will erroneously tell you that a land trust is best used just to hide the property owner's identity. Not true. Properly constructed, it can be far more effective at shielding you against liens, suits, and judgments than an LLC. For more information, go to http://www.landtrust.net
So, see a good real estate lawyer. Especially, learn about the limitations of an LLC. It's good, but it absolutely will not make you judgment proof.
Hope that helps.
George Schell, Jr.
585-377-2682 x 11 or georgejr.@schelllaw.com
585-232-4910 or DeMarialaw@yahoo.com
585-272-7870 or email@example.com
Once you decide if getting an LLC is the route you would like go in purchasing investment properties, I welcome the opportunity to apply for the job of being your Realtor. Feel free to look at my website to see all currently available properties. Should you have further questions regarding investing in Rochester, please contact me via phone or email.
Thank you and I look forward to hearing from you,
Associate Broker, GREEN
Keller Williams Realty
2000 Winton Rd. S.