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How to protect my duplex (under my SSN) against lawsuits.

Posted Jun 10 2022, 19:38

Rookie mistake! I bought my first property under my own personal SSN instead of buying it under an LLC.

How can I protect it against potential lawsuits? 

Thanks

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Matt M.
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  • Easton, PA
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Matt M.
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Replied Jun 10 2022, 20:39
Quote from @Krystle Tavernier:

Rookie mistake! I bought my first property under my own personal SSN instead of buying it under an LLC.

How can I protect it against potential lawsuits? 

Thanks

Are you expecting lawsuits? Are you a slumlord? 
Have good coverages on your landlord insurance policies and get a minimum $1mil umbrella policy 

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Frank Greg
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Frank Greg
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Replied Jun 10 2022, 21:02
@Krystle Tavernier

Rookie mistake! I bought my first property under my own personal SSN instead of buying it under an LLC.

How can I protect it against potential lawsuits? 

You have to contact the lender to discuss this. Simply transferring any property from a person's name into an LLC without lender's consent can result in the lender accelerating the entire note. Also, having the property in your personal name does not just have personal liability concerns but whatever the loan amount is for the property, shows as a personal liability on your credit, affecting your debt-to-income which can be a drag on your personal credit.

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