NOW THAT YOU’VE BUILT UP THAT REAL ESTATE EQUITY, IS IT SUFFICIENTLY PROTECTED?

Real Estate is generally considered to be a very valuable and worthwhile investment. Although the real estate market has slowed down recently, many individuals have substantial equity in their real estate investments and in many cases real property assets constitute the major part of their estate. If you own real estate in addition to your residence, you need to pay attention to this warning.

With the huge proliferation of plaintiff lawsuits and the victim compensation attitude of juries and the courts, it is imperative that the proper steps be taken to protect your real estate assets and the hard earned equity build up that they represent. Insurance, of course, is a must, but, in addition, most income producing real estate and even raw land should be placed in limited liability companies (“LLCs”) in order to preserve and protect the other assets in your estate from claims that may not be covered by insurance. This is especially true if the property is jointly held with another investor or in a partnership where the problems of the other joint owners or partners can possibly endanger your own interest in the property. We have a more extensive article on Limited Liability Companies here on our website, and we encourage you to read it. Contact us in order to take the proper steps to protect and conserve your real property assets.