The reason you're creating the LLC to hold the property is because if your insurance fails,

then that is your backstop. That's Clint Coons, an attorney who helps real estate investors

deal with lawsuits, taxes, and business planning. So if you get sued personally, that sheriff's sale

on your real estate, well, that's not going to happen any longer because you don't own it.

In this episode, you'll learn the two main protections that LLCs offer.

One's called inside protection, meaning if something goes wrong with the property, you're

protected, and then outside protection.

Tips on using LLCs as a first-time real estate investor?

Most likely you're using conventional to buy that property.

There's no brush in setting up an LLC because you can't close in the LLC.

And why Clint recommends eventually forming one LLC per property. So by putting five properties

in one LLC, one tragic error happens. That $30,000 a year that you'd come to rely upon now can

be wiped out. And now we're going to dig into all of that and more.

So, Clint, I talk to a lot of people who have opinions about this subject about LLCs and real estate investing, whether they go together or when you should do it. But not everybody's an attorney who works with people on a day-in-day-out basis

actually doing this stuff.

So I've been really excited to talk to you about it.

And I was wondering from a 101 level, could you unpack what an LLC is

and why it's so popular as a vehicle that people talk about with real estate investing?

Maybe we can just start there.

Yeah, well, I mean, it's very basic. An LLC is a legal entity. It's separate and apart from you.

And when you look at a limited liability company, I mean, it tells you exactly what it's going to do for you.

It's going to limit your liability exposure.

...