How do you shield the equity in your rental property?

How do you shield the equity in your rental property?

Investor · Wilmington, DE · Member since 2013 · 394 posts · 123 votes
How do you like to shield the equity in your property? I have used a HELOC on a property that has 50% equity, but was wondering what other ways landlords have used. I’m not sure that, at this stage in my investing career, having a ton of equity is very valuable. Do others use liens as a shield?
0Reply
12 views

Most Popular Reply

Parsippany, NJ · Member since 2016 · 64 posts · 49 votes
8y
@Eric Armstrong You can read Tom Wheelwrights book for Rich Dad Poor Dad Company. Forgot what its called. Would answer your question well.
See this reply in the discussion

7 Replies

Jump to latestLatest
  • Investor · Las Vegas, NV · Member since 2013 · 131 posts · 63 votes
    8y

    Hi @Eric Armstrong this isn't a lien option but umbrella insurance is pretty good coverage to have to protect you're equity. 

  • Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    8y

    Shield it how, exactly? Do you mean from liability if someone were to sue you? Or shield it from a market crash, or.....?

  • Investor · Wilmington, DE · Member since 2013 · 394 posts · 123 votes
    8y

    @Ali Boone.....I;m just looking for ways for a money hungry atty  to go after assets for something minimal.  I carry plenty of insurance, but thought that if they look into the property and see it's 90% leveraged they would be less interested.  

  • Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    8y
    Originally posted by @Eric Armstrong:

    @Ali Boone.....I;m just looking for ways for a money hungry atty  to go after assets for something minimal.  I carry plenty of insurance, but thought that if they look into the property and see it's 90% leveraged they would be less interested.  

    Umbrella insurance is super-cheap and covers liability. Would there be a way for them to see it's 90% leveraged? Fortunately I can say I have no idea how people focused on suing decide if someone or something is worth their time or not. 

    The big thing I do, which seems contrary to a lot of people on here, is I don't tell people how many properties I own. I'm asked quite a bit, but I stay pretty vague about it. I don't want anyone to know if I'm worth going after or not ;)

  • Parsippany, NJ · Member since 2016 · 64 posts · 49 votes
    8y
    @Eric Armstrong You nailed it. ELOC or Refi. If your rate is good and you dont want to extend term, just stick with ELOC. Or sell and 1031 into bigger.
  • Parsippany, NJ · Member since 2016 · 64 posts · 49 votes
    8y
    @Eric Armstrong You can read Tom Wheelwrights book for Rich Dad Poor Dad Company. Forgot what its called. Would answer your question well.
  • Investor · Salt Lake City, UT · Member since 2018 · 63 posts · 45 votes
    8y

    If you've got insurance questions on how to shield your equity, @Michael Norris is really knowledgeable 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.