When it comes to investing in real estate, be it 1 property or 100 properties, your liability can
land you in court if you are found to be liable for damages or injuries, and a lawsuit will likely
follow. Most lawsuits end with a settlement or judgement, in other words, you will have to pay
for whatever damages have occurred, usually be selling your property.
Asset protection is a strategy developed to help protect your wealth over the long term. It’s not a
tool just used by those that are very wealthy or own lots of properties. It is applicable to most
people, especially those that own real estate investments.
Asset protection is a legal way of protecting your assets from third-party claims such as creditors or tenants. It’s one of the most important steps you can take to ensure your assets are protected while building your portfolio.
Having the proper legal structure in place for your real estate is critical and protecting your real
estate properties through a combination of limited liability companies and corporations is the key
to mitigating the risk of loosing your investment properties.