Asset protection for a beginner
5 Replies
Kevin Hoff
Investor from Oceanside, CA
posted about 1 year ago
Hi everyone,
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?
Much appreciated!
Lauren Juarez
New to Real Estate from Greenville, TX
replied about 1 year ago
There are some great BiggerPockets articles and blog posts on this topic. Garrett Sutton's book Start Your Own Corporation may also be useful!
Mike D'Arrigo
Turn key provider from San Jose, California
replied about 1 year ago
@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.
Dennis M.
Rental Property Investor from Erie, pa
replied about 1 year ago
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
Son D.
Rental Property Investor from boston, ma
replied about 1 year ago
From newbie to newbie: Get your properties first. Once you have a sizable asset then worry about setting up entities to protect it.
Kevin Hoff
Investor from Oceanside, CA
replied about 1 year ago
Thanks everyone! Much appreciated