Best Structure for Asset protection for California out of State

6 Replies

I was wondering if other Investors would Chime in.  For California Investor that is investing outside the state. 

What Structure do to you recommend? Does it matter if  you own properties in that  entity state specific state.  What if you own in multiple states example  Phoenix, Tx and Tn

-Thoughts on Arizona LLC as they have on $50 annual filing fee( and strong protection rules) vs other states that carry much higher annual fees.

Also Thoughts on California $800 annual filing fee.  

Any California Investors found optimal strategy?

Appreciate all feedback.

Alex

This post has been removed.

John Anderson

Insurance already in place including umbrella. I am looking for asset protection in the event Insurance does not cover. I am about to expand portfolio with expansion comes more risks. Just trying to mitigate those risk as efficiently as possible.

Best,

Alex

This post has been removed.

Exactly, That is why I am looking at ways to mitigate any legals issues that may arisee by placing assets in structure like llc. Umbrella insurance is not very expensive. The goal is to protect personal assets. Insurance will cover many things. Its the things they don't cover that concerns me. 

Hoping to find best practices for Llc structure and states. 

Best,

Alex

You need to sit down with a competent attorney in California that also has Real Estate Law expertise in the states you intend to acquire assets in.  I would recommend Geraci Law Firm in Irvine.

Originally posted by @Alex S. :

I was wondering if other Investors would Chime in.  For California Investor that is investing outside the state. 

What Structure do to you recommend? Does it matter if  you own properties in that  entity state specific state.  What if you own in multiple states example  Phoenix, Tx and Tn

-Thoughts on Arizona LLC as they have on $50 annual filing fee( and strong protection rules) vs other states that carry much higher annual fees.

Also Thoughts on California $800 annual filing fee.  

Any California Investors found optimal strategy?

Appreciate all feedback.

Alex

<THIS IS NOT LEGAL ADVICE>

What are you investing in?

If SFR, you don't need an LLC and even if you had one it may not protect you as it may be considered a strawman by the court if you ever get sued. If MF, you acquire property in LLC and have a partnership agreement drafted by an experienced attorney.

If you decide to setup a LLC anyway...I suggest a Delaware LLC for various reasons.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here