Jason Clark, Clark Howard discussed on Clark Howard Show

Automatic TRANSCRIPT

On the clark howard show hi jason clark how would you rate thank you you wanna talk about real estate arm i would actually my wife and i recently purchased a new home and it had a guest house on the property and we started renting it on one of the popular being decides and we've been pretty successful with it so we kind of started thinking maybe there's more opportunity in that and the work thinking about opening or creating an llc by multiple properties and renting him out shortterm online and i was just kind of curious one what your opinion was on that and to what you think might be the best way to get started in that approach right so let's go to the llc thing i the whole idea of an llc for rental properties every rental property is in its own llc okay and the reason is is that if you end up with multiple rental properties in one llc limited liability company and you have something bad happen at one of those properties all the properties are at risk okay second mostly which is why you do one per property second if you're going to have to finance the purchase of the investment properties most lenders are not going to wet you title those in most states in an llc you and your wife to own them as individuals so the alternative is for you if you start accumulating properties is to have a was soon as an umbrella insurance policy are you familiar with that term i've heard it briefly but i i don't know enough about it all it means is that in addition to the insurance you have to have like the homeowners policy that kind of thing and it also would cover your car's with the insurance policy that you have to ensure your cars an umbrella lays over everything you have and in the event something happens that you're fault or responsible for the umbrella.

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