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Updated over 7 years ago,

User Stats

10
Posts
5
Votes
Michael Pazirandeh
  • Investor
  • North Hollywood, CA
5
Votes |
10
Posts

Is it really worth setting up an LLC?

Michael Pazirandeh
  • Investor
  • North Hollywood, CA
Posted

I understand why many people set up an LLC for their investment properties, but my question is simple: "Is it worth it?" I've asked several investors and they always say I MUST set up an LLC to protect myself from getting sued and losing the property. And I get that. However, I always ask the following question and get the following response:

Me: "Have you or someone you know ever been sued?"

Them: "No, but it's just for your protection"

That's like me saying, "Hey, why aren't you wearing a hard helmet when you walk outside. Didn't you hear about the guy who died when a tree fell on him?" Yes, it's safer for me to walk around with a hard helmet at all times, but I'm NEVER going to actually do it since it's inconvenient. I see the LLC like wearing a hard helmet. Yes, it'll protect me, but the likelihood of a tenant suing and winning is very unlikely (as long as you treat them with respect and dignity) like the tree following on your head.

I would love to hear stories about Bigger Pocket members getting sued and losing your property as well as why you got sued. Thanks!

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