LLC, Land Trust, or Umbrella Policy

[Dave Jackson]

Okay guys and gals, I have read SO many forum posts about land contracts, LLCs, S-Corps, etc. However, I can't seem to figure out what is best for my situation. I am not managing my own properties, so I don't need to protect that side of the business. I am simply going to be renting out rehabbed and turn-key properties (mostly SFH, maybe some multi-families for cash flow), trying to build up passive income this way over a few years, and then be able to quit my job now and invest in properties full time. I am not thinking about running my own PM firm for awhile, so knowing that, should I set up an LLC, or should I get an umbrella policy for my properties? Or, should I get a land trust? If so, for any of these, please help me understand why I should do what you suggest and how it is better than the others.

Thanks for all your help!

[Curt Davis]

Umbrella insurance policy will be your best coverage for protection which it sounds like what your asking about. Having another LLC is just another tax return to keep up with and renew every year.

Good luck