All Forum Posts by: Jingru Sui

Something that will help shed some light on this is reading Garrett Sutton's book "Start Your Own Corporation" as well as Robert Kiyosaki's "Rich Dad's Guide to Investing".  On page 245 of this same book (Kiyosaki's) I'll quote him, "If you are serious about doing business, then you do NOT want to do business as a private citizen.  That is too risky, especially in this day and age of lawsuits."  Now, there's probably going to be some push back on my response, but it's something to seriously think about.  You say that you're just starting out so proceed cautiously with what you may be inclined to dismiss.  Garrett Sutton (the tax professional that actually does Robert Kiyosaki's taxes) actually has a few issues with some of the very advice that you've been given in other responses on this thread.  In the end, you're going to have to research for yourself and 2 of the resources I strongly recommend you read are the 2 books that I mentioned.  They're multi-million dollar investors and tax professionals and they're content is spot on.  I'm half way through "Start Your Own Corporation" and it's a real eye-opener.  You're obviously dong some due diligence being on here and posting that question and I encourage you to continue your due diligence.  Very smart.  Since Garrett Sutton's advice speaks specifically to some of the advice you've been given here, I'd can't encourage you enough to at least read the book and take his advice into consideration.  I'm taking the time to read the entire Rich Dad series by Kiyosaki and more of Garrett Sutton's books.  Recommending a umbrella only approach may not be a sound decision, but again, it's your choice.

 Sure. Just take out the maximum liability on the property that your insurer allows (mine allows 2 mil). You have to have insurance anyway, so you just increase that part of it. When I got too many rentals for the PUP to cover it I moved all of the rentals to another insurance company and maxed out those limits. My PUP still covers me on losses beyond that amount up to my insured level, which is another 2 mil. 

Did you know you can just get a large liability insurance policy, and a personal umbrella policy? I have such that covers me @ $4 mill per property. I can't see any type of gross negligence on my part that would wipe out more than that in a lawsuit. 

@Jingru Sui talk to a local real estate lawyer as they will help with the process. Please keep in mind your bank will not likely allow the mortgage to be changed to the LLC name, however you can still transfer the title but be aware of the due-on-sale clause. I would also recommend looking into an umbrella policy if you haven't already as we did both, the umbrella and title transfer, on our most recent rental.

Do you own the property? If you have a mortgage you will need to contact the lender to see if they allow it. If you own it, you may be able to quitclaim and file the transfer but there can be problems there as well.

You need a lawyer. It is worth the money spent to have your questions answered specific to your location and situation.

Out of curiosity, are you referring to possible asset protection when you state "max protection"?