It’s well known that anyone investing in real estate needs to take steps to protect themselves. The potential for lawsuits is always present and even insurance isn’t enough to stop the devastation that they can wreak. Many would assume that trusts can provide the necessary protection, and it’s true that they can protect assets that are placed within them. However, for the real estate investor there’s a way to further limit liability and protect not only assets that are held in trusts but all personal assets.
Creating an LLC
If you personally own your real estate then you owe it to yourself to change that. By creating a Limited Liability Company, LLC, you can ensure that any lawsuits cannot touch your personal property. How does it work? By holding your real estate investments in an LLC you ensure that any lawsuits are directed to the LLC and cannot touch your own personal assets. In this way you ensure that only your investments are at risk, but there’s something you can do to limit your liability even further.
Using Multiple LLCs
If you own multiple properties then you can minimize your risk by creating a separate LLC to hold each property. This may involve a lot of paperwork and some fees, but it is absolutely worth it in the long run. That’s because by creating separate LLCs a lawsuit about something involving one property can’t touch any of the others that you own. Securing this protection can free you from the constant need to worry about risk.
Every situation is different and if you want the best asset protection then you need to trust the best legal team to help you come up with an individualized plan. At Morgan Legal Group we can create the ultimate asset protection plan, tailored specifically to you. Contact us and start protecting what’s yours.