LLCs

[Robert Phillips]

As a former real estate investor who lost everything, when I begin investing again, should I purchase properties under an LLC? I'm told I will be protected personally by doing it this way.

[Rob Beland]

Some people will tell you an LLC is your best asset protection option. Im of the opinion along with many others that at the level of 90% of individual investors (no business partners) on BP a good liability policy is sufficient. Investors typically carry debt between 60-75% leaving a relatively small amount of exposure (equity). Cash flow can be easily consumed with accounting fees, attorney fees, and fees associated with setting up and maintaining a separate business entity.