Real Estate Investing with Coach Carson

#348: Should you get an LLC for your Rental Property Investing?

Jun 17, 2024

Legal expert Clint Coons discusses the benefits of using LLCs for real estate investments, emphasizing asset protection and tax efficiencies. He advises on creating 1 LLC per property early on, the importance of insurance, and the role of LLCs in shielding assets from liabilities.

40:18

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Episode guests

Clint Coons

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Episode notes

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Quick takeaways

LLCs provide crucial protection for real estate investors by shielding personal assets from lawsuits related to property ownership.

LLCs offer centralized protection by consolidating property ownership within individual entities.

Creating LLCs requires careful consideration beyond mere online guidance, emphasizing nuanced state-specific regulations and intricacies.

Deep dives

Importance of LLCs for Real Estate Investors

LLCs provide crucial protection for real estate investors by shielding personal assets from lawsuits related to property ownership. Positioned as a backstop to insurance failures, LLCs prevent personal liability by separating ownership from the individual. Inside protection safeguards investors if property-related issues arise, while outside protection shields against personal errors like loan defaults. Clint Coons explains why one LLC per property enhances protection, emphasizing the significance of structuring LLCs to ensure comprehensive asset safeguarding.

Intro

3min

Benefits of Using LLCs for Real Estate Asset Protection

8min

Choosing the Right Legal Structure for Real Estate Investing

5min

LLCs for Rental Property Investing: Balancing Tax Benefits and Legal Protection

15min

Exploring Creative Financing and Insurance Strategies for Real Estate Investors

2min

LLC Considerations for Rental Properties

10min

Free legal consultation with Clint’s team: https://aba.link/CoachSS This is an affiliate link. We will earn a commission if you eventually pay for a service.

⭐ Join Rental Property Mastery, my community of rental investors on their way to financial freedom: http://coachcarson.com/rpm

🎙️ Episode #348 – "You're creating the LLC to hold the property because if your insurance fails, that is your backstop." Clint Coons explains the benefits of an LLC, when to create it, and why it's safer for you to create 1 LLC per property earlier in your stage.

▶️ Next Episode: How to Prevent 5 Expensive Real Estate Scenarios – Advice from my Attorney:

📄 Show Notes:

https://www.coachcarson.com/llcprotection/

🎬 Timestamps:

0:00 - Why you need an LLC

1:10 - What is an LLC?

10:52 - LLC vs other corporations

15:41 - Tax benefits of LLCs

18:09 - Clint's advice for beginners

23:00 - How self-management creates liability

26:27 - Insurance and LLCs

30:36 - General principles for LLCs