Real Estate Rookie The Rookie Guide to Asset Protection: LLCs, Insurance, Partnerships, & Trusts
19 snips
May 14, 2025 Bonnie Galam, a real estate attorney and educator, joins the discussion on asset protection for investors. She clarifies the crucial differences between LLCs, trusts, and insurance, emphasizing that proactive planning is key. Bonnie shares three actionable steps rookies can take right away, highlights the risks of equity partnerships, and explains how personal life events can jeopardize investments. Learn why having an estate plan and understanding local legal nuances are essential for safeguarding your portfolio without overspending.
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Two Sides of Asset Protection
- Asset protection involves both proactive and reactive strategies to protect not just assets but also income and time.
- Proactive steps, such as strong legal structures and relationships, often yield more value than purely defensive measures like LLCs and insurance.
Start Asset Protection Early
- Start thinking about asset protection before your first deal to avoid costly fixes later, including states' transfer taxes.
- Risks exist even with your first property; early planning helps manage due diligence, contracts, and partnerships better.
Keep Asset Protection Simple
- Don't overcomplicate asset protection with multi-state LLC structures for small portfolios.
- Appropriate insurance and a simple LLC often suffice to keep you protected and encourage investing.