105: Don't Lose Your Portfolio to Lawsuits! Here's How to Protect Yourself

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 18 August 2021

⏱️ 61 minutes

🔗️ Recording | iTunes | RSS

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Summary

As a rookie, you’re in the best position possible to start protecting your growing empire of rental properties, but what’s the best way to legally shield yourself from liability and litigation? We talk to awarded asset protection attorney, Brian T Bradley, Esq, who answers questions ranging from when to buy umbrella insurance, how to set up LLCs, and whether or not S-Corps are worth forming. If you’ve ever worried about protecting your personal assets from business-related liability, this is THE episode to watch! The most important point discussed throughout this episode is how you need to start planning for protection early. All too often, investors start building their rental property portfolios without the correct legal setup behind them, only to have one bad lawsuit wipe out decades worth of work. Even Ashley and Tony had some questions on whether or not they needed to shift their portfolio structures! We’ll also have Brian back this Saturday to answer Q&As from listeners, so stick around for that show to minimize your risk when getting into this profitable industry of real estate investing! In This Episode We Cover Why everyone needs a “base layer” of protection when owning real estate What asset protection is and how it benefits investors When and how to set up your LLCs for different properties How many properties should be housed under one LLC Disregarded entities, charging orders, and anonymity Designing a blueprint for your real estate portfolio How to find the best CPAs, attorneys, and legal professionals for your real estate business And So Much More! Links from the Show Real Estate Rookie Youtube Ashley's Instagram Tony's Instagram Real Estate Rookie Facebook Group LLC or Umbrella Insurance: Which Is Better for Investors? BiggerPockets Calculator BiggerPockets Conference Check the full show notes here: https://www.biggerpockets.com/rookie105 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Real Estate Rookie, episode 105.
0:04.0	For U-Rookies, if you're buying one property or two, spare minimum start with an LLC
0:12.0	and insurance, create one layer of separation between you and the other personal assets
0:17.0	or what something does happen because owning Real Estate is the most heavily litigated area.
0:24.0	My name is Ashley Care and I am here coming live from Virginia Beach.
0:29.0	And I'm here with Tony Robinson and it looks like Tony's just at home.
0:33.0	I'm just, I'm nowhere exciting, but I think we got to call off everyone that's watching us on YouTube
0:39.0	that Ashley's got probably the best t-shirt on that I've ever seen her wear in my life.
0:43.0	It's a boys in the hood t-shirt with a young, yeah, I love that shirt.
0:48.0	Ashley's got, you know, I swear, you were like a hip hop, I don't know, like kind of sewer back in the day or something.
0:55.0	And Ashley's like, you got all the good songs, you got the good t-shirts, you got some Jordans on maybe right now that I can't see.
1:01.0	Come on Tony, back in the day, you mean currently.
1:05.0	Wait until you see my, so we're recording this, it's almost July, but I have a, you're going to love my fourth of July
1:12.0	t-shirts that I have too.
1:13.0	So, you know, keep an eye on my Instagram, you'll love it even more.
1:18.0	But today, super awesome episode.
1:21.0	We brought on a professional for you guys to break it down for a rookie investor.
1:27.0	What you need to do now and what you need to plan for in the future to be protected.
1:33.0	So, we brought on an attorney who specializes in asset protection.
1:39.0	This was awesome, awesome episode Tony.
1:41.0	Yeah, I mean, I learned so much, you know, like as we were going through the episode,
1:44.0	I'm like feverishly scribbling notes on how not to get sued on how not to lose my portfolio.
	...

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