Asset protection for starter

[John Fong]

I'm starting to build a business to grow my rental properties and would like to get some advise on what's the right asset protection strategy for me as a starter.

I live in CA and currently have 3 rental properties in CA, 2 are long term and 1 is short term. They all under my personal names now. I wonder what's a good structure for my scenario. I read about WY LLC and DST, but not sure if these complex structure fits my current situation, so want to get some advices from here.

I also want to make sure I have good insurance, what should I look out for in my insurance policy to make sure they cover the common liability / accident claims? Would you recommend getting a high liability limit for each property or should I get an umbrella policy?

Thanks all!

[Chris Seveney]

Quote from @John Fong:

I'm starting to build a business to grow my rental properties and would like to get some advise on what's the right asset protection strategy for me as a starter.

I live in CA and currently have 3 rental properties in CA, 2 are long term and 1 is short term. They all under my personal names now. I wonder what's a good structure for my scenario. I read about WY LLC and DST, but not sure if these complex structure fits my current situation, so want to get some advices from here.

I also want to make sure I have good insurance, what should I look out for in my insurance policy to make sure they cover the common liability / accident claims? Would you recommend getting a high liability limit for each property or should I get an umbrella policy?

Thanks all!

if they have leverage on them, keep them in your name for now as in CA you will also pay close to $1k a year for registering the LLC. Just have a good umbrella policy. If you pay them off and then looked to refinance then could be a time to move them to a LLC and get financing under the LLC. Getting financing in your name and moving to LLC I have been advised does not provide true asset protection.