my primary motivation for putting the properties into LLCs was to protect my assets from staged ‘trip and fall’ accidents
the scenario is that a tenant ‘accidentally’ trips and falls and then sues the property owner – property owner loses everything to lowlife scum
supposedly, there are people who research public records looking for real estate that is fully paid for (no outstanding mortgage recorded with city) – they then go to those specific properties to stage their trip and fall accidents
I only had one incident where I felt like I was dealing with potential tenants that were looking for a landlord to sue – after approving their applications, I met two law students at one of my beach properties to sign the lease and they backed out when they saw they would be renting from an LLC and not me (this is an assumption on my part – they made up some BS excuse and left after they saw my lease)
[aside: I had more than adequate insurance to deal with any legitimate issue arising at a property and maintained an ‘umbrella’ policy to cover any liability that wasn’t covered by the insurance on each property]
