How many who self-manage their properties still use an LLC?

Question

I've heard conflicting things (even from different lawyers) about whether an LLC really gives you liability protection (inside liability from injury to tenant, guests occurring on property) if you're self-managing the property. I'm curious how many here use an LLC if you're self-managing?

Bienes Raices · Answer

By "self-managing" I meant actually being the person whose at the property doing repairs etc. (instead of using a property manager). From what I've heard you can still be sued as an individual (and lose) in this situation even if you own the property in an LLC. So I'm not really talking about corporate veil piercing.

Account Closed · Answer

Thank you for that info, I am going to take a look at it.  My reason for asking was that I have personally seen where people list their properties in their own name, and then lose one or all of them if they get taken to court.  What I have seen more of is people owning their properties as a trust.

Joshua D. · Answer

To find the posts Will talked about and others, please see:
Real Estate Corporation & LLC Structure Info.

Ingrid Nagy · Answer

I've been doing on each property since 95.  I have not had any lawsuits so nothing has been challenged.  I believe however that it would hold up - each building runs separately under its own LLC and all income & expenses flow thru each separate checkbook.

Will Barnard · Answer

To start, I am not an attorney and this opinion is not to be construed as legal advice.

Self managing or not, the inside liability protection can come into question if you are found to be negligable, co-mingle personal funds with the LLC funds, and/or improperly run your business. Gregg Boots here on BP has written several great blog posts about the use of LLC's and the means in which the corporate veil can be pierced.

Account Closed · Answer

Do you mean llc versus listing ownership in your own personal name?