Using a land trust and LLC for asset protection

[Michael Draper]

A little preliminary information.

I currently live in Los Angeles, CA. I have zero debt and enough cash saved for a down payment on a SFH. I'm looking for out of state properties in GA and AL. The long term goal is to acquire 8-10 properties over the next decade to diversify my investments and have revenue for retirement. I work full-time at a W-2 and have a side hustle and so setting this all up to be passive as possible is important.

So in this early stage, I want to create a solid structure that is streamlined, offers protection for liability and offers tax advantages for somebody living in CA.

Getting to the point...

At this stage of the game, is creating a land trust in conjunction with an LLC overkill? Or should I just take it under my name and use basic home insurance until I acquire a handful of properties then move them into a trust/LLC for protection?

Any guidance is greatly appreciated. 

Thank you!

[Costin I.]

I'm not a lawyer,  so take it all under advisement. The 2% Asspro Rule is my opinion on how much it makes sense to spend on this kind of insurance. The diagram is something I put together to help others in their quest for answers, as I went through the same process you are going now, and trust me, there are many deep rabbit holes to follow. 

I don't know where you can find similar graphic resources, you can PM me if you have other questions or want to chat more. And if you want professional and specialized advice in this arena, Scott Smith here on BP is a good resource to contact. Tell him Costin sent you.