Asset Protection for Novice Real Estate Investor

[JASON CHOI]

Hello BP Members!

I am in need for some honest guidance as to protecting my assets before I start my real estate business. I've gotten some mixed opinions in protecting my personal assets: create LLC vs. purchase more insurance per house in addition to umbrella policy.

Some real estate investor told me that LLC would only increase your out-of-pocket costs since you have to pay to create it and also pay taxes annually. She suggested buying more insurance (you will need to have this anyway even if you have LLC) until I accumulate 5-7 properties in my own name.

My biggest concern is protecting my family assets and separate any potential problems from business. I would appreciate your advice!

Thank you.