In a perfect world, honest real estate investors would never have to deal with frivolous lawsuits. But we live in the real world where being sued is a very real possibility.

So, how do you protect yourself so that an angry tenant cannot get to your personal assets?

What kinds of insurance do you need to protect your real estate assets from an ‘outside attack’?

And where should you set up a holding company to take advantage of the strongest possible asset protection laws?

On the latest episode of the Apartment Building Investing podcast, Garrett Sutton joins me to discuss the ins and outs of asset protection.

He explains how the LLC protects your personal assets, why it’s important to set up an LLC from Day One, and how insurance serves as your first line of defense.

He also offers insight around entity structure, speaking to the value of setting up a Wyoming holding company with charging order protection.

Listen in to understand the concept of equity stripping to further protect your real estate assets—and learn how to avoid personal liability by following the 4 corporate formalities!

Click Here To Get $100 OFF the Incorporation Startup Packet (Mention this Podcast)

Key Takeaways

Why it’s important to set up an LLC from Day One

How the LLC protects you as an individual

The role of insurance in providing asset protection

Why Garrett recommends an umbrella policy

How to set up the best possible entity structure

The value of a charging order protection

The 4 corporate formalities

  1. Annual meeting w/ minutes
  2. Registered agent in state
  3. Separate tax return
  4. Separate bank account

The consequences of failing to follow corporate formalities

How Corporate Direct can retroactively fix compliance issues

The concept of equity stripping

How to notify your insurance company re: title transfer

Connect with Garrett

Corporate Direct Call (800) 600-1760

Resources

Loopholes of Real Estate by Garrett Sutton Start Your Own Corporation by Garrett Sutton Books by Garrett Sutton Rich Dad Michael’s Mentoring Program Partner with Michael Invest with Michael Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank Podcast Show Notes Review the Podcast on iTunes Michael on Facebook Apartment Investor Network Facebook Group Michael on Instagram

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