Sued for Negligence

[Danny Mak]

I saw discussions about tenants suing for negligence and the potential of an investor to lose everything.

This may be the purpose for someone setting up an LLC, but for someone just getting started, it may not be reasonable to start one.

Does anyone have any stories or insight about this?

[John Underwood]

Take care of your properties.

Take care of your tenants. You can be professional and your tenants like you.

Have adequate insurance.

Once you have a handful of properties consider getting an attorney to set up some asset protection.

You can also buy an umbrella policy.

I personally don't have an umbrella but did recently get an attorney to add some layers of protection.

Each property in an LLC, all owned by one master LLC, owned by a Family Trust.

In SC there are no annual fees on LLCs.