To LLC or NOT to LLC?

[Phil Clark]

Investors, I am in a quandary. There is a lot of conflicting information and strategies on finance and entities and pass throughs and holding companies that I am getting more confused that educated. 

I reside in California, however my investments will be our of market simply for price of entry reasons. It is critical for me to have asset protection in place, and I wanted to ask you all:

"If you had to (got to) do it again from the beginning, how would you set up your structure?"

After reading and listening it seems having some version of an LLC for each property created in the same state as the property, then they all flow into a top level Holding Company.

So, what would you do?

[Justin R.]

If you have the assets worth protecting, or a litigious career, then yes. The vast majority of the population spends way too much time worrying about asset protection though when they don't even have the assets to protect; their energy should be used on finding deals.

I am not an attorney, but spent countless hours studying prior to making my asset protection selection. Here are my findings.

1. Do the right thing. Don't be negligent or provide an unsafe situation.

2. Have proper insurance

3. Get an umbrella policy

4. Have some debt on your property

5. If you meet all of these and have assets to protect, then look into an LLC or trust (recommended for CA residents not wanting to pay the $800 annual filing fee PER LLC.) My recommendation is finding an attorney you like and follow their recommendation for your personal situation.

Best of luck!