All Forum Posts by: Don K.

Unfortunately, my attorney is on vacation in China til early Oct. I'll have to wait.

Understood on the different entities being on the insurance policy and the possible comingling of personal and business. There is definitely a balance that must be struck between being reckless and being overly cautious- that's where we get into opinions and preferences- land of the attorneys. I'm going to talk with my attorney about this and see what he recommends in my circumstances.

Hi Mitch,

Something else that comes to mind re. having the insurance for a rental still in your personal name with your LLC holding title and being listed as an other insured. I understand that keeping the rental property insurance under your own personal name with the LLC as an other insured opens up your own assets to liability exposure because now your business interest is intermixed with your personal. This creates an opportunity for an attorney to make an argument that your LLC isn't operating as a separate entity.

Other folks thoughts?

Thanks,
Don

Hi Mitch,

Thanks for the response. I was wondering if simply adding the LLC as an other insured would be possible. Have you ever had to file claim with the LLC listed as an other insured and if so, were there any problems?

I've been reading various forum articles on about a quit claim to transfer a personally held property into an LLC.

My question is this: When you do the quit claim, how do you handle the insurance on the property?

If I change the property insurance from my name to the LLC's, the insurance company is under obligation to notify the lender of the change. If I don't change the insurance and keep it in my personal name, then the insurance company could claim that the property wasn't covered.

Is there a way around this?

Hi Folks,

Any recommendations for landlord's insurance policy for single family homes in Dallas Ft Worth Texas? The current premiums for loss and liability are too high and the quotes for premiums I'm getting are not any better.

Thanks,

Don

Hi Folks,

Glad to see this discussion. I've gotten a quote for landlord's insurance that was triple what you're being quoted. My properties are in the Dallas area: single family homes, 100k value. Couple of questions:

1. What companies are giving these premium quotes?
2. Where are your properties located?

Thanks,
Don

Thanks for the response. Yep, it's all easy to do online and the main concern is a solid operations agreement. I'm looking for an agreement that will work well for a two member LLC for real estate investments that covers various contingencies associated with that area of business.

Has anybody used Corporatedirect.com for forming an LLC? Garrett Sutton is the attorney and I've been impressed with his writing both here and in books. I'd like to hear from someone who has used him to form a company and learn about their experience.

What services have others used and found to be helpful in forming an LLC. My main concern is ensuring that the Operations agreement covers all the bases for real estate buying and holding with another member in the LLC.

Thanks!

Don

Hi Chris,

I've been asking attorneys, Pensco customer service, ETC staff and others about this issue and most have have never even been asked the question and didn't have an answer. On another forum, this topic was listed in a forum and one respondent wrote:

"If there is a judgment against you personally, creditors can seize all non-exempt assets to pay the judgment. This includes IRAs (even those unrelated to the lawsuit) unless they are protected by state law as there is no ERISA-equivalent protection for IRAs. If the property is owned by an IRA, the creditor can liquidate the IRA, regardless of state protections, and go after your personal assets if there is a judgment against you personally. A 401k is subject to ERISA, which means is assets are immune to creditor seizure. However, that protection does not apply if the 401k is found liable at trial."

Don