There has to be a balance between asset protection and the costs.

I say its all about protection.

Hi guys,I tried to look for an answer through the search but could not find one.Here is the scenario.We are family members.We have a total combined equity of 100KWe are looking to buy Apt buildings 20 or more units per Apt complex.2 of the members have excellent credit1 of the members has poor credit but good equity( which we may need to use for down payment).How do I set up a company in order to protect everyone?

They can be low and they can be high but at least you have a professional giving you a value while protecting their client--the bank.

And if so, how am I protected so that if they were to default on the contract I would be able to take action?

Title to property is protected from things like Tax liens, Judgments, divorces, death, and other "life problems" that people get themselves into.

John, I'm guessing you are looking at protecting your contract, and in that case "recording" it with a title company will do little unless another investor is closing with the same title company.

Thats the key being able to protect it from the stupidity and carelessness of tenants and using abraisives.

It's worth protecting yourself

Or is it just a redundant doubling of the protection just in case one of the wires is not connected properly or gets chewed through or something?