Regarding my point 7 on the degree of privacy one can get through an LLC, I appreciate McWagner’s point that there is no privacy with real property.
Let me see if I understand:
a) the sole reason that justifies putting properties into LLCs is asset protection
b) The quality/value of the LLC depends essentially on the operating agreement.
c) There are some very carefully crafted and sophisticated operating agreements that may provide some degree of asset protection.
d) But there are complex questions of law and jurisprudence as to whether they will actually provide such protection.
e) And another says, if the sole reason for transferring the property to an LLC is “asset protection” (to shield assets in the event of a lawsuit). In this case, you may be running afoul of the Uniform Fraudulent Transfer Act.
I) an LLC with a top notch operating agreement (in light of accurate knowledge of current law and jurisprudence), is a reasonable strategy, but no guarantee, especially because of unclear law and its interpretation in the courts
II) it is also not clear, or even unlikely, that your identity can be protected, even by the best crafted LLC
III) the better your operating agreement and legal representation, the better your chances of protecting assets through an LLC
IV) there may be offerings to small investors of LLC strategies, backed up by legal support that allow them the benefits of III
V) at least for a beginner, owning property in your own name, with a good general liability policy, combined with good management practices, is not only much more straightforward and cost-effective, but might protect your assets as well as the best LLC (primarily due to the fact that it is not clear which LLC strategies will withstand the courts)
Am I missing anything?