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Asset Protection and Real Estate Attorneys
Hi all,
I am very new to real estate investing - in fact I haven't started yet. I do have my own home and some retirement portfolios so I would like to protect my current assets before jumping into RE with both feet. Can anyone suggest a good asset protection lawyer?
Also, from the UBG, I understand I should have a real estate attorney on my team. Do RE attorneys also do asset protection or is that a separate part of law? Do RE attorneys need to live in the state in which I invest? So if I have investments in several states, would I need a separate attorney for each state?
Thank you for any guidance you can provide!
- Investor, Entrepreneur, Educator
- Springfield, MO
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Hi Margaret,
Yes, you should have a RE attorney licensed in the state(s) you operate in. IMO, they should be in the same jurisdiction of the property, all RE is local, practices vary.
UBG?
Asset protection is more in depth in estate planning which is a legal specialty with Trust attorneys. But basic company formations are rather simple and are done by RE attorneys as such relate to RE.
The best asset protection in RE is good business practice and management. Next is a good insurance policy, then comes business formations.
LLCs are the most popular with investors, but if they are not managed correctly they can be worthless. A good attorney can run through an LLC like Grant through Richmond. Liability can also come in the back door of your company as that company is a personal asset that you own.
Speak to an attorney locally, what you plan on doing will have much to do with what you need to do. I'd also suggest that new investors stay close to home and not get involved in out of state strategies. Good luck :)
Attorneys often specialize. Asset protection and estate planning are often one area of specialization. Landlord/tenant law is another. So, yes, you will often use two different attorneys for these two specializations. And landlord/tenant law does vary from state to state, or even by location. Cities sometimes have specific laws. So, if your investments are scattered around you'll want an attorney in each area.
All that said I don't really think you "have attorney's on your team" in any formal sense. These aren't people you would have on retainer. Rather you would ask for references for the speciality you need in the area you're working and add these to your contact lists. When you start landlording in a specific area, have an attorney in the area review your lease and advise you regarding local rules.
@Bill Gulley Thank you for your response. I appreciate your insight. I definitely agree that good business practices and management are a must. I just don't want to leave the assets I have worked to attain over the past 30 years unprotected.
As for investing close to home, I have been told that since I live in California, I would get a better rate of return if I invest somewhere outside of California. I don't know if this is true or not. I do think investing out of state is more challenging for an investor since I have no idea which markets to research. I am still struggling with whether I should invest close to home or out of state. Do you have any thoughts?
@Jon Holdman Thank you for your response. I see that I have a lot of work/research to do as I enter into REI!
- Investor, Entrepreneur, Educator
- Springfield, MO
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Margaret, what part of REI do you want to do? You can have a rental out of state, but you'll need a trusted manager, that can be hard to come by when you only have one property with them. You might hook up with a partner and flip properties, that can work if you're the money center. Just depends, but starting off, it's better to be able to watch the property, know what's going on, understand that market, etc. You might consider some where you could concentrate in one market, that you can visit if you need to. Lots written here about long distance investing, there are just more risks going out of town.
I suggest you contact SOHO, Save Our Heritage Organisition, yes, with an "s" not a "z". Largest rehab group in CA. (Bruce was running for mayor) they are in the San Diego area. They may be able to give you some guidance there. You might want to pm me for "family" contact. Good luck :)
Yes @Jon Holdman I was referring to the Ultimate Beginner's Guide. Thank you for catching that.
Thanks for the help @Bill Gulley