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  1. 1. Asset Protection for Real Estate Investors Daniel M Croke
  2. 2. Real estate is often promoted as one of the saferinvestment strategies to follow. Granted, itwould be inaccurate to say that there is no riskinvolved with real estate investing. However,there is less risk than what would be found withother real estate plans. However, risk will bepresent which is why it is vital to take the stepsnecessary to protect your assets. Remember,when you do not effectively take steps towardsasset protection, you run the risk of losing them.Thankfully, there are a few basic steps that canbe employed to boost asset protectionsignificantly. http://www.wholesalerealestatesource.com/
  3. 3. First, it certainly does not hurt to work with areal estate attorney that understands the basicsof asset protection. When you try to navigatesuch a complicated issue from a perspective oflimited understanding, you run the risk ofundermining your venture. As such, it is wise toconsult with those that are experienced in suchmatters. This way, your asset protectionbecomes “air tight” and prevents any potentialloopholes from developing that can place yourpersonal assets at risk. http://www.wholesalerealestatesource.com/
  4. 4. If you are purchasing a property “here and there”and holding them for later resale, you generally willhave limited assets at risk. However, if you arelooking to become involved with wholesaling orother expansive real estate investment venturesyou need to clearly define what assets are at risk.At this point, you need to determine a methodwhich will protect those assets.For those curious as to what is the most commonstep to take to protect their assets, it would be thesetting up of an LLC (Limited Liability Corporation)and performing your real estate ventures under theheading of the LLC. The concept of a LLC is rathersimple. http://www.wholesalerealestatesource.com/
  5. 5. You would operate your real estatebusiness/investing transactions under the name ofthe LLC as opposed to yourself personally. Thisway, in the unforeseen scenario where you areheld liable for something that occurs on yourproperty (i.e. a slip and fall accident), the assetsof the LLC (business) would be at risk as opposedto your own personal assets. This type ofprotection can prove significantly helpful in thecase of an unfortunate scenario where theinvestor is held civilly liable. Similarly, issues offiling bankruptcy could be handled by filingbankruptcy on the business as opposed topersonal bankruptcy. http://www.wholesalerealestatesource.com/
  6. 6. Please note: forming a LLC does not exclude anyonefrom personal responsibility nor does it provide ameans of skirting the law. This is a commonmisconception. Its prime purpose is to protect forpersonal asset protection. Nothing more and nothingless is at play here.Another asset protection method would be to set upa C Corporation. This type of corporation is set upfor income tax purposes. When you are wholesalingand involved in more expansive real estate ventures,you probably would be best served filing taxes onthe ventures under the C Corporation as opposed toa sole proprietorship. http://www.wholesalerealestatesource.com/
  7. 7. This could help provide more effective personalasset protection as it relates to taxation issues. Thegoal here is to stay in compliance with all tax lawsbut keeping the business separate from yourpersonal tax filings.Any type of expansive real estate investment planwill place a certain amount of your assets at risk.That is why asset protection is vital. It draws theproverbial line in the sand in terms of what assetsare at risk and to what degree. That’s why exploringoptions with LLC and C Corporations are helpful.But, there is a much better way to ensure assetprotection: make profitable real estate transactions! http://www.wholesalerealestatesource.com/
  8. 8. Wholesale Real Estate Source is a Real Estate Investment Company that Buys and Sells Wholesale Foreclosed Properties Nationwide. To Learn More About Us and Available Properties for Sale visit....http://blog.wholesalerealestatesource.com/ http://www.wholesalerealestatesource.com/
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