All Forum Posts by: Steve K.

What are the odds of being sued? Pretty slim. Most lawsuits against Landlords are security deposit disputes. Even if you were sued for a slip-and-fall or something major, your insurance should cover it. Insurance companies are in the game of making money. When they write you a policy with $350,000 in coverage, they know that the odds of you ever using that much are astronomically in their favor.

And how much equity do you have? It's ridiculous to see people setting up an LLC when they have just a few rentals with less than $100,000 in equity. Do you think someone's going to file a lawsuit and try to take your $350,000 insurance policy AND your equity?

There are probably a million investors on this site. Try to find one that's been sued for more than their standard insurance policy would cover.

Thanks for your response, Nathan. Just starting out, your response gives me peace that its okay not to form a corp or LLC, right off the bat. Would you recommend an LLC at any point? Or is it sufficient just to have a really good umbrella policy for all of your rentals? Thank you very much!

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Quote from @Chris Seveney:

Quote from @Steve K.:

Hi everyone!

New investor here, trying to learn as much as I can from all of you veterans out there. Thank you in advance for your advice and help!

In general, does having a good umbrella policy offer adequate protection compared to forming an LLC for my future rental properties. I've been receiving conflicting information if the hassle of forming and maintaining an LLC is worth it. Could having a good umbrella policy adequately protect us against a tenant trying to sue us for our assets?

Ask your attorney. For my personal portfolio we have an umbrella policy for my rentals. We viewed an LLC as overkill and I would rather have insurance and much lower loan rates

Hi Chris,

Thanks for your response. I have a sense that all attorney's would want you to form a LLC or Corp. I just wanted to find out what most RE investors are doing. A couple of questions for you in reference to your reply:

(1) What are the main things I should look for in a good umbrella policy? Are there certain must haves or clauses I should have (or not have)?

(2) Does having an LLC or corp increase your loan rates? (sorry if this is a basic question- beginner here :)

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Hi everyone!

New investor here, trying to learn as much as I can from all of you veterans out there. Thank you in advance for your advice and help!

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Hi everyone!

I am new to real estate investing, and would like to start by getting my real estate license in California. Could anyone please recommend a good course (in-person or online) to work toward obtaining my real estate license?

Thank you so much!

-Steve

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Orange County, California

All Forum Posts by: Steve K.

Steve K. has started 14 posts and replied 45 times.

Post: Can someone recommend a good real estate course to obtain my Real Estate License?

Post: LLC versus Umbrella Policy

Post: LLC versus Umbrella Policy

Post: LLC versus Umbrella Policy

Post: Can someone recommend a good real estate course to obtain my Real Estate License?