BiggerPockets Real Estate Podcast

Do You Need an LLC for Rental Property Investing?

37 snips
Sep 1, 2025
In this discussion, Brian T. Bradley, a nationally renowned asset protection lawyer, breaks down the ins and outs of LLCs for rental property investing. He debunks common myths, like the idea that LLCs guarantee anonymity or tax evasion. Listeners learn when to upgrade to trusts and the critical importance of proper asset protection to avoid legal pitfalls. Brian also shares practical tips for maintaining LLCs, illustrating how choosing the right legal entity can safeguard investments and keep personal assets secure.
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INSIGHT

Asset Protection Is A Preventive Barrier

  • Asset protection places a legal barrier between your assets and potential creditors before a lawsuit arises.
  • Brian T. Bradley compares it to putting valuables in a safe to keep them out of reach.
ADVICE

Layer Your Protections As You Grow

  • Start with LLCs and insurance as your foundational layer when beginning real estate investing.
  • Add a management company and then an asset protection trust as your portfolio grows.
INSIGHT

Local Law Governs Real Estate Liability

  • State law where the property is located usually governs tort claims against real estate investments.
  • A foreign LLC (e.g., Wyoming) doesn't avoid local law if you operate in another state.
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