asset protection vs better deals

[Joe Geist]

How do you guys protect yourselves against being sued? did you begin investing without LLC then move properties into LLC later and risk DoS clause? do you have LLCs or do you use combo umbrella/liability insurance? the financing options for LLC with commercial loans make many deals = not such good deals....struggling on next step here. buy in my own name with conventional and have higher legal exposure - or use LLC and keep separate bank etc to protect against "piercing corporate veil" and accept weaker returns until the business grows large enough. thanks in advance

[David Dachtera]

@Joe Geist,

Insurance does not protect against lawsuits, it invites them. Professional litigants know how to determine that you are holding properties in your personal name and they know how to deal with insurance companies and not only get settlements, but go after your personal possessions and assets as well.

The only way to avoid lawsuits is to "Control everything, own nothing". Even shysters won't launch a lawsuit knowing that you have no personal holdings to go after.

If you're looking to balance the pros and cons of business entities, consider: what matters is not how much money you make, rather how much of what you make is protected so you can keep it out of the hands of those who would sue you to get it.

Doing business has costs ("the costs of doing business"). REI is a business, not a hobby.