Preparing to buy my first property

[Seth Whitenton]

Hello everybody,

I have been a lurker on bigger pockets for a while now and have learned a lot. I am in the process of buying a rental property and I plan to put the property in a llc. I have filed the llc with the secrets of state, I have my ein to start my business account at my bank and I am buying the property in the llc. I want to make sure that I have all of my bases covered to where if there was a lawsuit that it could not come back to me personally. This is my first time having a llc and I am still trying to understand the ins and outs of them.  If it matters I am located in ky.  Thanks!

[Jim Rivell]

Hey Seth - I know it can be daunting in the beginning but I would try to get a referral for a Real Estate lawyer and spend 15-30 minutes on the phone with him asking these questions and what systems you can put in place to protect yourself. With only 1 rental, the likelihood of a lawsuit is small relative to someone with 500 units so I would say you do have some "time" to research and decide how you want to approach.

Anyways, I know a lawyer might sound extremely expensive especially after buying your first property and not having a ton of money or reserves, but it is money well spent to sleep well at night.