I understand creating an entity (LLC, etc.) for a flipping business to protect your personal assets from potential issues that arise on a property flip.
But my understanding is that if someone gets a judgment against me personally that all of my assets including LLCs are subject to that claim.
I already have a $5 million personal umbrella policy. Are there any other steps someone can suggest to add additional asset protection? Thank you!!
I hear a lot of discussions of establishing a "Land Trust" for each property you purchase. I don't know the advantages and/or disadvantages. Food for thought
@John Moore, a Land Trust is certainly beneficial when properly used. That being said, a land trust, in and of itself, provides NO asset protection. Unless you consider anonymity to be asset protection, that is :)
make the benifical interest of the trust your llc people wont know what your llc onws (less likely to sue) and they wont even know the llc really owns however can make closings more difucult as many people dont know how to properly use trust even most attorneys. sry about spelling doing this ony phone. you can email and we can talk about our system its complex and cost about 20k to set up but essentially I own nothing but my minor childern do. there are other ways to accomplish protection
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