The neighborhood is centrally located and about 100 years old but due to the geography, also isolated from the other cities' sprawl.

Not a big deal we isolated it to a couple of big elbows, but too big for me to break down and fix.

By isolating the Property Management with the ownership of the asset you will prevent people from getting at the asset.

You can use an LP but that doesn’t provide the same level of liability isolation.  

As long as the Deeds were recorded before the lawsuit and or Judgement.SO, isolate RISK, balance equity to $zero$,I have been advised to make sure you fund the LLC properly in the beginning, NEVER co mingle personal expenses, and regularly sweep excess cash out ( ie. through an employment agreement or other DOCUMENTED business agreement like a lease back or whatever).Also remember that you are liable personally for anything you personally do, LLC business or not.

(We're not discussing seller financing, below market financing or assumable financing here, that's a whole another discussion vis-a-vis the relationship of value to below market financing.)What the Professor is saying is that real estate values have NOT increased in "real dollar", when you exclude inflation from that equation.Once upon a time, a long time ago in a distant land, the distance measured in a few miles, before the current real estate crash; I discovered several pockets of real estate that were somewhat isolated from market fluctuations in value.

This might be done to circumvent resell seasoning requirements, or to conceal the purchase price in the public records.You have alot of equity in the first LLC (perhaps $200k+) and are creating a new LLC to spread out risk and better protect your net worth.One of the properties has high lawsuit risk for one reason or another and you want to isolate it.You want to make it difficult for someone (trial lawyer, your competition, etc.) to track your collective holdings.

The fire is mainly isolated in the garage and a little bit spread to the kitchen.  

Like options, seller financing and use of OPMStep eight: Work to develop better systems to pursue, attract, document, control, risk management (to control loss).Step nine: Take out or isolate profits. 

Thanks guys.I know there are some eternal optimists and isolated pockets of strength in the real estate market but it sounds like it could take a longer before we really know the extent of the problems if lenders are not foreclosing on properties they normally would due to lack of manpower, reworking bad loans, whatever.BTW Merrill Lynch took another huge hit due to the subprime mess after previously writing down assets.