Have you worked yourself into a state of analysis paralysis trying to decide if your real estate investing venture should be a corporation, and LLC, or something else entirely? Do you spend hours worrying about asset protection before you have any to protect? This, my friend, is wasted energy and a perfect example of putting the cart before the horse, especially if you’re just starting out.
Start investing. Get some properties. Develop a portfolio and begin creating wealth. Once the process of investing has actually begun you can take the time to obsess over these other periphery details if you like. Now we’re not saying your business entity doesn’t matter and protecting your assets don’t matter. The problem is when your concerns over such topics prevent you from doing what we’re all here to do – invest in income properties and make money!
It’s easy to insure properties and, as long as you pay attention to a few key areas, there should be no trouble as far as liability. The first is safety. If you have a property manager telling you that there’s a crack in the sidewalk and someone’s going to fall down, then fix the crack. Common sense. The other area to pay attention to is discrimination. There are very specific laws preventing this so just don’t do it and you’ll be okay. One way to protect yourself against discrimination claims is to hire a property manager. This puts a barrier between you and prospective tenants.
Something else to keep in mind, Jason has been doing this for 22 years and has never had a lawsuit filed against him. Not that it can’t happen but concerns over these factors should not slow down your investing. And keep in mind that Empowered Investor does not give legal advice. We aren’t attorneys or don’t claim to make legal recommendations. Contact a legal professional if you have such concerns.
