All Forum Posts by: Woodrow Wildcat

Thanks - fortunately the umbrella provider is paying for my lawyer. 

Lawyer thinks I have a good case but warns me that juries are unpredictable. 

As far as a place to start with a settlement, plaintiff has presented medical bills of almost $70,000. His lawyer took the suit on contingency. 

No problem. Obviously I need insurance advice. I had two agents for over thirty years I thought I could trust to protect me. I was wrong   

The question at hand is whether to settle with my own money (even though I did nothing wrong) or go to trial and risk that the jury hates landlords and thinks they are rich   

I’m already being sued. The beer thing won’t work because the neighbor is an alcoholic and has admitted to drinking on the day of the accident. 

Answers

I was not informed of any leak by the neighbor or my tenant. 

I don’t believe my tenant has renters insurance as he can barely pay his rent and has his own problems which include disability and possible drug dependency (hard to make sense of what he says). 

Property is in my own name, not an LLC.

Yes a jury trial is required if I don’t settle in mediation. 

Thanks for your help. I thought I was a smart person but I trusted others too much 

I don’t have a mortgage. I have a policy on my own home (with another insurance company/agent) but there is no liability. I thought there was. 

I thought I did but the insurance agent was wrong. He said my auto policy would cover the liability. Now he’s dead and I can’t prove he misled me. 

I am a landlord and the homeowner next door is suing me for personal injury, claiming a leak from my property caused him to fall and break a leg on his property. My tenant never reported the leak to me and said he fixed it himself.

I did nothing wrong but I’m afraid if I don’t settle and it goes to a jury trial they will be prejudiced against landlords and see me as rich because I own several properties (which many are losing money because of escalating property taxes).

I only have umbrella insurance covering losses above $300,000. So I will have to personally pay anything below that.

This is worrying me sick.

Seeking advice...

I'm almost 54 been working a non-stress mediocre job for 25 years which has given the ability to acquire rentals on the side - 10 SF and one duplex. I now have all but two paid off and haven't bought anything in seven years though I was tempted a year or two ago. When the stock market tanked I accelerated my investments in that area though have always done my best to max 401K and Roth.

So I'm at about $2 million equity and $800K in stocks (some bonds).

Plan to retire late 55 and dabble in RE sales where may find a bargain or two. In the meantime I'm beefing up the stocks. May or may not inherit a fairly good chunk but I am not using it as any kind of plan.

I had goal of $3 to $5 million. Had illusions of $8 to $10. Funny how that youthful enthusiasm starts to fade. Also the early deaths of some friends tends to make priorities change. I am single and have lived on little (taking a few fabulous trips) for so long that the prospect of $8K+/ month with no mortgage or debt sounds pretty good right now. Don't plan on touching IRA/401K until forced at 70 1/2.

Thanks for the quick answer - I am inquiring as a single person with no partnerships. I know some of the benefits of a corporation but do you think there are any in particular which would benefit a small time landlord (a dozen properties) going from the Schedule E to a corporate return? Seems to me that's complicating things too much and perhaps losing the $25,000 deduction which really helps the little guy.

Question: when you transfer properties into LLCs do you stlll do your income tax the same way - Schedule E with $25,000 in deductions max against earned income? Thanks..