A real estate business would form an LLC (or other entity) for either tax purposes or asset protection.

For further enticement the return could look like this: a certain % on their money for what is called a preferred return (they receive this before any profit sharing) and then they receive a % of any profits that the property makes in any given situation, Fix & Flip or BRRR.There are many ways for this to work but you will have to understand exactly what your private investor is looking for in a return and you should provide them with assurance that their investment is protected as best as it can be via things like them having 1st position on the deed, promissory note signed by you for repayment, the property is purchased at such a discount that if you had to sell it in 30 days in its present condition, they would receive their investment back from the sales proceeds, etc... 

Am I screwed here or am I protected like w/ real estate property under the Garn-St.

@Vincent SerpicoEveryone that I know that bought after 2017, whether primary or investment, is suffering loss now....But the slow down has not run its course yet...Wait until 2022 or later...

As Damian stated allot of contractors know it is guaranteed money , but some didn't like the strict labor vs material accounting, but it is nice and in a way protects you. 

It seems like it is coming from a place of good intention, but is not particularly well thought out and opens the door for a lot of serious issues.I fully understand the therapeutic and healing benefits of pets for certain people, but there are already protections in place for service animals as well as emotional support animals that protect this subset of pet owners so I don't really understand why this bill is necessary - seems like it will cause far more harm than good, and again, this is coming from someone that likes pets! 

I am looking to purchase my first rental property by year end and was curious as to what types of insurance I would need to protect my investment.

Now you understand that long leases are no hedge of protection for you they only benefit the tenant !

However, I don't like the use of insurance as the sole protection of your personal assets.

Yes, banks will finance such a deal in almost all cases, however, to protect their risk, they will underwrite it as if the taxes were paid to the purchase price (Or a %) even if they are reassessed much lower.