Re: Thanks - Posted by Anna
Posted by Anna on July 22, 2003 at 22:27:33:
Each investor has it’s own idea on what the optimal solution is - some do LLCs, some buy umbrella insurance, some just take the risk… Therefore you may hear different opinions.
Many investors, including myself, favor putting each property into a separate LLC. In case you get sued by a tenant in property A, only property A will be in jeopardy. If tenant in property A sues you and you have property A, B and C in this same LLC, you may loose all of them.
But with this also comes pain to set up separate LLCs each time you buy a property (time, expense).
As I stated, this is just my opinion as I am a risk - avert investor. I don’t want to end up in a poor house because a bozo trips over his own foot and breaks a leg on my property.
I think that it’s worth the time and money though.
You can always put couple of properties into one lLC to make it easier