In both your scenarios, the lender should be able to recoup their investment provided there are no other creditors (or at least liabilities that exceed assets).

Folks use an LLC for anonymity and liability protection.

This is a huge plus because it offers liability protection, meaning your personal assets are shielded if there are any legal issues with tenants or the property.Doesn’t Appear on Your Personal Credit: One of the big perks is that these loans don’t get reported on your personal credit profile, so they won’t impact your credit score or debt visibility.

my question is WHY U sound very successful today with your holdings.. why take on the risk of managing money for others and giving up 70 or 80% of the profit equity on deals you find .. do less deals and keep it all and have no liability to investors.

Hi Tyler,Since you have rental properties, it’s crucial to get excellent advice from your CPA, who can help you minimize your tax liability and save more of your hard-earned money.

Most leases you can purchase are generic in nature and do not equip you with very helpful tools to manage your property in the most effective and efficient manner, lowering costs, reducing liabilities, creating revenue centers, etc. 

Generally you would not have liability since there was no negligence on your part.

Just would like to know would this be smart on my behalf(liability)protection wise? 

Your primary insurance policy with $300,000 in liability coverage should be sufficient in 99.999% of all lawsuits.5.

You are responsible for obtaining your own casualty and liability insurance.