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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: An easier way... Posted by Joanna M on March 01, 2010 at 2:32 PM In Reply to: Re: An easier way... posted by Buyer on February 28, 2010 at 8:53 PM Buyer: Thank you so much for sharing your knowledge. I already have good liability insurance for each one of them. Can you explain what's the 5 million umbrella policy? I know HOA(home owner's association) has umbrella policy for all its unit. Is it similar to that? So your umbrella policy will cover each property as long as the total annual loss is within 5M? Thanks again! Joanna : : HI, Rick: : : Thank you for your advice. I did read through Ward's introduction of title holding trust. : : Title holding trust will detach property from a person's name. So if someone is sued elsewhere, his/her real estate holding won't be affected. : : My concern is : : if a landlord is sued by a tenant, he/she has to come out of the title holding trust : : to face it. Title holding trust helps you hide, but will not truly protect you after lawsuits happen. : : If you put all your rentals(under different title holding trust) into one LLC and jack up your equity value, all that value can be harmed by one lawsuit. : : So, in order to limit the damage to that specific property,you still have to separate each one of them. : : Any good suggestions? : : Thanks in advance! : : Joanna : From a buyer and holder of real estate. : I place larger rentals (10+ units) in different LLCs for each property. I place all the smaller income properties and SFR rentals in 1 LLC. I obtain comprehensive insurance for each property with the highest liability possible and an umbrella policy of 5 million over that, I make needed repairs in a timely manner, I sleep fine at night. : : : : : Not to contradict your advisor, why not discuss the following tactic: : : : Use one LLC to act as trustee and create a separate title holding trust for each property. : : : You could even hire a third party with an existing LLC to act as the trustee for probably less that the formation costs and annual franchise tax fee; maybe 200-300/yr. : : : What I suggest you do is to learn how to use these techniques to your benefit. Once you know how to create each trust, it's easy, quick and cheap. : : : Jach Shea and his Florida partner have a book on this topic. Also, our forum host Ward Hanigan teaches a half day, one-on-one course that will answer all of your detailed questions. Check it out on the side bar to the left under 'hands-on' training. : : : Hope this helps. Follow Ups: Re: An easier way... dond 4:36 AM, 03/02/10 (1) Re: An easier way... Joanna M 12:41 AM, 03/03/10 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Buyer: : Thank you so much for sharing your knowledge. I already have good liability insurance for each one : of them. Can you explain what's the 5 million umbrella policy? I know HOA(home owner's association) has umbrella policy for all its unit. : Is it similar to that? So your umbrella policy will cover each property as long as the total annual loss is within 5M? : Thanks again! : Joanna : : : HI, Rick: : : : Thank you for your advice. I did read through Ward's introduction of title holding trust. : : : Title holding trust will detach property from a person's name. So if someone is sued elsewhere, his/her real estate holding won't be affected. : : : My concern is : : : if a landlord is sued by a tenant, he/she has to come out of the title holding trust : : : to face it. Title holding trust helps you hide, but will not truly protect you after lawsuits happen. : : : If you put all your rentals(under different title holding trust) into one LLC and jack up your equity value, all that value can be harmed by one lawsuit. : : : So, in order to limit the damage to that specific property,you still have to separate each one of them. : : : Any good suggestions? : : : Thanks in advance! : : : Joanna : : From a buyer and holder of real estate. : : I place larger rentals (10+ units) in different LLCs for each property. I place all the smaller income properties and SFR rentals in 1 LLC. I obtain comprehensive insurance for each property with the highest liability possible and an umbrella policy of 5 million over that, I make needed repairs in a timely manner, I sleep fine at night. : : : : : : : Not to contradict your advisor, why not discuss the following tactic: : : : : Use one LLC to act as trustee and create a separate title holding trust for each property. : : : : You could even hire a third party with an existing LLC to act as the trustee for probably less that the formation costs and annual franchise tax fee; maybe 200-300/yr. : : : : What I suggest you do is to learn how to use these techniques to your benefit. Once you know how to create each trust, it's easy, quick and cheap. : : : : Jach Shea and his Florida partner have a book on this topic. Also, our forum host Ward Hanigan teaches a half day, one-on-one course that will answer all of your detailed questions. Check it out on the side bar to the left under 'hands-on' training. : : : : Hope this helps. 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