Overseas Investor humbly request for expert advice on REO

[davewindsor]

@kiwi1988 post:20

@davewindsor post:19

@kiwi1988 post:18

I would personally recommend using one LLC per property otherwise if you are faced with a lawsuit and say 5 properties are owned by one LLC, the person suing can take all 5 properties. At the most (which i have read in books) have a max of two properties per LLC.

cheers,
Kiwi

Don’t waste your money on setting up multiple LLCs. If you are sued, the insurance company pays for your lawyer and then covers the loss minus deductible if you lose. That’s why you get insurance. So, don’t worry about LLC protection from lawsuits. Just make sure you have a lot of liability coverage.

Putting multiple properties on the same policy is cheaper too. You also have to pay an accountant at least $700 per LLC to sign it off every year. Stop reading books and recanting theory that paralyzes your dreams from overanalysis. Just jump into real estate and you’ll cross those bridges as you get there. You’ll do fine. I did.

I have heard in many situations where insurance doesn’t always protect you from lawsuits- depending on the lawsuit and the seriousness. However at te end of the day its up to you

Give me specific cases proving you’d be better off with multiple LLCs. Don’t just say you heard it.

[Rob_in_Atlanta]

Multiple LLCs will require multiple tax returns, under law. If you plan to use entities rather than your person to insulate your properties, investigate using trusts, as there are no requirements with trusts to file a special tax return.

Please be advised that I am not suggesting not to file a return nor am I giving legal or tax advice. Just buy AND READ a tax code book to understand the laws and make your best choices. According to the tax laws, a trust does not require a return like an LLC or corporation.

Rob