Protecting Real Estate with LLCs
IN THIS CHAPTER
Using an LLC to protect your real estate holdings
Transferring the title and dealing with mortgage companies
Real estate offers the easiest path to success … and the easiest path to lawsuits. If someone is living in a rental property you own and is injured, he’ll most likely sue, especially because he doesn’t even have to do an asset search to know that you have at least one valuable asset — the property he’s living in.
Even if you just own vacant land, you’re still open to multitudes of liabilities. No matter how clear the signs are, trespassers will always end up on your property, and if an accident happens, you’ll most likely be held responsible. Not to mention all the environmental liabilities that can occur with vacant land. Although real estate gives you good cause to be wary, all these potential liabilities aren’t the end of the world. With some good advice (starting with this chapter!) and an LLC or two, you’ll be fine!
Comparing LLCs to Other Possible Real Estate Entities
LLCs are the best entities for holding real estate, no doubt about it. They offer the most liability protection of any entity type out there (Chapter 2 goes into detail about the other entities), and when you’re looking to protect valuable ...