Tonight, I went to a real estate seminar which taught the subject on assets protection. I thought it was an excellent information and want to share all of you what I learnt tonight
- Sole, Joint Venture, Teannet In common are bad way to hold title
- General partnership is the worst way to hold title. You may lose your personal assets if your partner get sued! Double liability!
- Land trust offer no assets protection
- LLC or LP is the most recommended way to hold title.
- Two kinds of attack: A) Tenant fell in your property and sue you B) You had bad car accident and get sued
- LLC can protect you from attack B, but not attack A!
- LLC is most recommended to be formed in Nevada or Wyoming. These two states has the best state law in the property owner's interest.
- You should buy a Umbrella insurance policy to cover your personal liability.
- Consider putting your brokerage account under LLC instead of your own name to shield against potential lawsuit
- After transferring your title from personal to a LLC, don't forget to inform the insurance company for the change
- Use 1 LLC to hold 1 property in the state, and have a central LLC manage each individual LLC. You're the ultimate manager of this one central LLC
- Debt is good way to discourage creditors.
For more information, I'll recommend you to visit the speaker for tonight's seminar www.sutlaw.com Garrtt Sutton is very knowledgble real estate attroney.
1 comment:
wow, those are new and interesting topics for me, but if i do not have too much assets i think i might not need that.
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