Asset protection strategies

[Daniel Jones]

I am a relatively new investor with only 3 rental properties, but want to expand. Concerned about asset protection; looking for ideas. I have an LLC which owns my current properties. I have heard that some people create an LLC for each property, but that seems cumbersome esp. if they each have their own bank account, etc. How do you guys who have 10, 20, 30+ doors do it?

[David Rhodes]

Hi Daniel- You are right to think about asset protection now during your growth period. When we started we went to a few classes on asset protection. We decided to use LLC and Trust to protect ourselves. I am not a professional asset protection person and here is what we do. We have a "Mother" company LLC. We then created another "Holding Company" LLC that the mother company owns and we are managing members of. Each of our Holding Companies holds up to 10 Properties. We use Land Trust to further protect ourselves. If you haven't heard of a land trust I would suggest you read up on them. Hope this helps