Real Estate Investing Forums

Real Estate Investing => General Real Estate Investing => Topic started by: Hansen3 on November 27, 2007, 12:50:01 pm

Title: Question about protecting properties
Post by: Hansen3 on November 27, 2007, 12:50:01 pm
I own 2 houses (one being my personal) with a quite a bit of equity in them. What is the best way to go about protecting them? Best way to protect them from each other in case of a lawsuit? One is my personal and another is rented out on yearly contract. Single guy can't put it in my wifes name or anything.

Anything would help
Title: Re: Question about protecting properties
Post by: BLL on November 27, 2007, 01:19:40 pm
Homestead for your personal property is best. A good insurance policy will give the biggest value for protecting the rental home. LLCs and the other stuff you read about won't do much good in your situation.
Title: Re: Question about protecting properties
Post by: imbeautiful1 on November 28, 2007, 07:27:34 pm
Put each of them in seperate land trusts. This link may help:

http://www.corpthis.com/landtrusts.asp
Title: Re: Question about protecting properties
Post by: Hansen3 on November 29, 2007, 10:33:14 pm
Thanks that helps a lot

How do you go about setting up a land trust?
Title: Re: Question about protecting properties
Post by: BLL on November 30, 2007, 10:07:20 am
Put each of them in seperate land trusts. This link may help:

http://www.corpthis.com/landtrusts.asp

That's an interesting article. I have serious concerns with any organization that advocates fraud.
Title: Re: Question about protecting properties
Post by: telarsen on December 06, 2007, 03:13:27 pm
Buy enough insurance on each property and get an Umbrella policy ($1-$3 million). This will go "over" your 2 houses and autos too. Cost should be $150-$500 per year.

Tom
Title: Re: Question about protecting properties
Post by: aak5454 on December 08, 2007, 12:18:08 am
I own 2 houses (one being my personal) with a quite a bit of equity in them. What is the best way to go about protecting them? Best way to protect them from each other in case of a lawsuit? One is my personal and another is rented out on yearly contract. Single guy can't put it in my wifes name or anything.

Anything would help

buy good liability insurance ($1-2M) and forget about it.  many, many lawsuit settle for insurance amts.  The probability you every need it is extremely small, but its worth the couple hundred dollars a year.
Title: Re: Question about protecting properties
Post by: VetteBoy on February 16, 2008, 07:17:10 pm
Wow, that's an amazing article to say the least. 

You do this, I think Fraud is the least of your "indictments".

 :flush
http://www.corpthis.com/landtrusts.asp
Title: Re: Question about protecting properties
Post by: Deal Hunter on February 16, 2008, 11:49:59 pm
I own 2 houses (one being my personal) with a quite a bit of equity in them. What is the best way to go about protecting them? Best way to protect them from each other in case of a lawsuit? One is my personal and another is rented out on yearly contract. Single guy can't put it in my wifes name or anything.

Anything would help

buy good liability insurance ($1-2M) and forget about it.  many, many lawsuit settle for insurance amts.  The probability you every need it is extremely small, but its worth the couple hundred dollars a year.

Goodness!  How much equity is the OP trying to protect that would justify the premium of a $1-$2M insurance policy???  I'd say go out and get an equity line or credit line on the property for the equity.  Do not use the credit line or spend the cash.  Keep balance to zero - total available credit will still show up on title as a lien on the property.  Shop around for the lowest yearly fee on the credit line - that will be cheaper than insurance premiums.

Remember, plaintiffs' lawyers will not even take a case unless there is $$ to make on the properties.  The lawyers will look up the property on their asset search sites and see that it is fully leveraged - hence, no equity and no lawsuit award - at least not enough for the effort.