You should always know what your capacity to borrow is before doing any deals. You don’t actually need to get a ‘loan’ before finding a deal. But, having a broker look over your financial situation will give you a good indication of what kind of capacity you have which will then allow to seek out opportunities within that capacity.

Crossing securities is rarely the solution. The same result can be had by not crossing, which would give you more flexibility generally speaking. Ask him why he can’t still access your equity required without crossing securities. He should be able to answer immediately.

Seeing as you’re not comfortable with that structure, tell him. It is your choice at the end of the day. He’s a credit advisor – not a credit forcer. He cannot force you to use that structure if you’re not comfortable.

Hi Adam. The simple answer is no. It isn’t imperative for the majority of people. But it really depends on what the longer term plan is & your situation. How big will your portfolio get realistically? Will you invest in multiple states? Is your profession the type that is risky from a litigation point of view?

These are the things you should discuss with a structuring lawyer who specialises in entity structuring. They can advise you which entity is best suited to your situation & goals and why.

Your situation sounds like it it’s in need of specific legal/tax/estate planning advice.

Perhaps get in touch with @terryw from this forum. He specialises in these areas.

https://www.propertyinvesting.com/members/terryw/

• This reply was modified 6 years, 6 months ago by  George Poullos. Reason: addition