Keeping Business and Family Separate?

[Kate Horrell]

Hi everyone! I'm hoping that some more experienced investors can give me some insight and/or perspective on my biggest problem in growing my REI business.

We currently have two investment properties that are doing quite well, and I'd love to buy more.   However, like most of us, I have a family to consider, and I don't want to take too much risk with our personal financial stability.

Is there a way to separate my business liabilities from my personal financial life?  I'm open to being creative, including taking my name off of our personal properties, in order to keep as much separation as possible.

Alternately, is there a way to get over this mental hurdle?

Anything you can offer would be greatly appreciated!

[Gavin Welch]

Kate

I use LLc's it separates the risk and liabilities.  I have several rental properties and I group three or four in a llc, then start another.  Its really easy and cheap here in Florida.  l also use them with different deal partnerships.  Each partnership gets a different llc,  that away it one were to fail, it should effect the other.

The fact is that risk is a part of real estate investing.  If you are worried about it, then you might be taking too much risk?  Education beats out fear every time.  (not in just real estate).  Eventually, you become accustomed to the risk and that is when most people slip up.  

I have recently started using a mastermind group that I formed on line with 5 other investors to help.  They will tell me when I'm taking too much risk or about to do something dumb. Since they are not local I'm not afraid of them trying to snake a deal.  It sounds cheesy, but it works.

I think a little bit of fear is good, it reminds us that we are willing to do what most will not.

Good Luck,

Gavin