I will be buying my first investment home in Kansas City and will have another on the way in a month or so. I have heard a lot of different opinions on how to protect your properties. I live in CA and don't want to pay $800 a year for an LLC (especially for only two homes). I am thinking of doing an umbrella policy to start? Any help/suggestions for a newbie?
There are some great BiggerPockets articles and blog posts on this topic. Garrett Sutton's book Start Your Own Corporation may also be useful!
@Kevin Hoff If you are financing with a conventional lender, and umbrella policy might be your only option. Lenders won't allow you to buy in an LLC.
If you want the highest protection buy the property in a land trust through a self directed IRA and make your beneficiary your LLC and the trustee somebody outside the state. It's a bit complicated to setup but wow the tenants attorney will have a nightmare trying to even figure out who actually owns the place much less how to litigate it lol
From newbie to newbie: Get your properties first. Once you have a sizable asset then worry about setting up entities to protect it.
Thanks everyone! Much appreciated