A limited liability company (LLC) is the most common entity structure used by real estate investors to hold investment properties. An LLC separates the investor's personal assets from the liabilities associated with the property, providing a legal shield against lawsuits, tenant claims, and other risks. Many investors create separate LLCs for each property or small group of properties to isolate risk. However, holding property in an LLC can complicate financing, as many residential lenders require personal name ownership. Strategies like buying in personal name and transferring to an LLC post-closing are common but should be reviewed with an attorney.