LLC or Land Trust

[Nick Martin]

I believe to have found my first rental property. It's a duplex, asking price is $71,000, tenants pay all utilities and mow grass, gross rent is $1,300/mo. Great school district, good rental history, etc. A friend of mine dissolved his LLCs last year and put all 9 of his 4 units, $500,000 personal house and vehicles into trusts and raised his insurance coverage to 3 million. He says that it is a far simpler process, less yearly paperwork and easier financing. I am planning to buy properties in East Tennessee, South Carolina and North Georgia because that is where we want to put down roots in a few years. I will have a property management company hired for all properties. Our five year goal is to purchase 20 properties. How should I structure myself????

[Rob Beland]

@Account Closed you are arguing against your own point. You are talking about liability insurance. If somebody slips and falls on your property they sue you because they say you are liable for their injuries. Your insurance company will fight to push the liability off of you and not have to pay the claim and push it back on the person who fell. Negligence is the main reason for liability insurance. Charging orders are what creditors use to go after people who try to hide behind an LLC.

If the walkway was not properly maintained you are liable for the injuries. You have liability insurance to pay the claim and to protect your personal assets. What am I missing?