Real Deal REInvestor Network

How Do You Bulletproof Your Rental Real Estate?

Congratulations. You’ve discovered one of the best ways to grow your personal wealth – investing in real estate. This is as true now in these turbulent financial times as ever.

But nagging in the back of your mind is the question of personal risk. What happens if someone trips and falls on the doorstep? What happens if the wiring is faulty and a tenant is caught in a fire!

The title to the property is in your name, so it isn’t as if it will be hard to find YOU, the owner, the person responsible for maintaining the property.

Is there any way to bulletproof the ownership of your rentals?

The answer, in a nutshell, is no. You can’t.

However, you might be able to make it so difficult and unprofitable for an attorney to pursue the case that he might think twice before going forward.

Enter the LLC – and its new best friend, the Trust. A properly constructed and managed LLC will provide you with excellent liability protection except in the case of active negligence.

Active negligence occurs when you personally make a decision or you do something that results in harm to someone else. A great example of active negligence is when you try to save money by hiring an unlicensed handyman or by doing a repair yourself. Better to contract the appropriate professionals or better still, hire a property management company – properly staffed and managed – to take care of your real estate for you.

If the LLC provides all this wonderful protection, then what does the Trust do? It provides a few valuable added extras.

Hands up those of you who were told the best protection comes from placing each property in its own LLC so a lawsuit in one LLC doesn’t affect your other properties.

Keep your hand up if the cost of following this strategy turned you completely upside down.

Enter the Trust – which when properly structured compartmentalizes liability risk.

In addition, a Trust gives you privacy, making it more difficult to figure out whom to sue. While the Trustee of the Trust is known, the beneficiary is not – especially if you use a management Trust to handle the money.

So, what is the structure you use for rental properties?

I stumbled on this today…

A Psalm for Busy People

The Lord is my Pacesetter, I shall not rush

He makes me stop and rest for quiet intervals,

He provides me with images of stillness

which restore my serenity

He leads me in ways of efficiency, through calmness of mind.

And His guidance is peace.

Even though I have a great many things to accomplish each day

I will not fret.

For His presence is here; His timeliness, His all-importance

will keep me in balance.

He prepares refreshment and renewal for me

in the midst of my activity.

By anointing my mind with His oils of tranquility

My cup of joyous energy overflows.

Surely harmony and effectiveness

shall be the fruits of my hours.

For I shall walk in the pace of my Lord forever.

Amen.

 

God is my source of strength, my life. I am  only a channel through which His Generosity and blessings flow. And I know that as I move on He will direct my path…

Get to know God's voice so well that it would be easily discernable it is something powerful. To get to this point we need to spend time with Him. The more time we spend with God, the more we will know His voice.
And you know what!!!
God talks more than anyone you will ever meet, and He talks as often as you need.
Intimacy with God and harmony with His plans for us will not be possible unless we discern His voice.
He knows what is best for us. When He gives us a mission He will provide and equip us with what we need to acomplish that.
But then, sometimes we get rebellious and just decide to follow our own minds and think that everything will be OK.
You know what happens !?!
It will go wrong, you will fell bad about what you are doing or with yourself. The point is, you will soon realize that you can not run or hide from your call.
But you know what is even better!?!
 God is always ready to forgive us. He doesn't consult our past errors to determine our future. He's not concerned about what we did yesterday, but what we do today.
Forget your mistakes, but not the lessons learned.
Accept God's will for your life, trust Him and wait on Him.

"Those who listen to instruction will prosper"(Proverbs 16:20)