While you are busy building your real estate portfolio, making investments and earning your passive income, it’s important to remember to raise the drawbridge and protect your future income. You should work with experienced professionals that understand the real estate investment business. Please note that this article is for informational purposes, not financial or legal advice.
As a Rochester real estate investor, you must understand how to protect your assets to avoid seeing your investments slip through your fingers. Public records list personal assets and provide information that could make you a lawsuit target. So enacting a strategy to protect yourself from the long arm of creditor claims is essential. As a landlord, you can separate your business and personal assets through an asset protection plan and take steps to limit your risk on individual properties. While nothing is foolproof, these steps are worth the effort. So read on as we explore what Rochester real estate investors need to know about asset protection.
Landlord Insurance
Your liability, or what you’re legally responsible for, can play a significant role in the outcome of a determination on a claim by your insurer. Therefore, understanding what is and isn’t covered and what steps you must take to protect yourself from lawsuits from injuries to tenants or their guests is an integral part of the picture Rochester real estate investors need to keep in mind when it comes to their asset protection strategy.
LLC
A limited liability company or an LLC is a legal business entity that is best used by holding an individual property in the LLC and paying the mortgage and operating expenses. Investors may place other asset classes within the LLC as well. Depending on your income level and the total value of holdings, it may be best to group properties under one LLC. LLCs shield personal assets from business debts and help you avoid double taxation. A complete understanding of these steps to protect the investment for your heirs is something Rochester real estate investors need to know about asset protection.
Trusts
If you’re a Rochester real estate investor looking to protect your assets and pass them on to beneficiaries, trust is one of the best tools for this task. Trusts function as an intermediary between you and your heirs that can be used to transfer ownership of property or other assets without going through probate. They also give you full control over how the money is distributed and what happens to it when you die.
Land Trusts
Land trusts are exclusive to real estate and mortgages or notes; this is another area of asset protectionRochester real estate investors need to know well. Land trusts also provide anonymity and avoid probate and certain liability protections. These organizations take authority or ownership of an investment property at your request as the owner and manage the property on behalf of the owner’s interests as a living trust while the owner is alive.
Real Estate Investment Business
Successful real estate investments can grow great wealth to pass on to your heirs. First, however, it would be best if you understood that investing in real estate is a business and requires dedication, thereby ensuring the long-term value of the holdings in your portfolio for your beneficiaries. Building and maintaining a healthy portfolio means you must know your market, understand the shifts and phases of current market values and be selective about the location of your investments. Investors should interact in the Rochester real estate market daily to keep tabs on market trends and local changes that affect investments. At Brett Buys Roc Houses LLC, our professional buyers understand that performing due diligence and running the numbers on each investment requires a reliable team with the mindset of investors. The professional buyers at Brett Buys Roc Houses LLC have spent years networking among like-minded professionals from every walk of the real estate industry to build the best team in the business.
The professional buyers at Brett Buys Roc Houses LLC are seasoned experts who built a career investing in the local Rochester real estate and know the market intimately. At Brett Buys Roc Houses LLC, we are passionate about helping our investors earn the highest possible returns on their investments and live out their retirement, enjoying their golden years on the cash flow earned through their passive income. At Brett Buys Roc Houses LLC, we have an in-house team to handle everything an investor needs. Working with a professional buyer from Brett Buys Roc Houses LLC makes it easy for investors like you to achieve your asset protection goals. Let the pros at Brett Buys Roc Houses LLC help you find the right location for your next investment or 1031 exchange property. Don’t forget to ask about our inventory of the best available investment properties in Rochester, steadily updated due to our vast connections in every facet of the local real estate industry. Call Brett Buys Roc Houses LLC at 585-299-9709.