We spend most of our lives working hard to build our wealth. Real estate asset protection is one strategy that is aimed at protecting that wealth long term. In lose terms, real estate protection involves legally protecting your assets from all sorts of claims such as creditors. This is one of the best decisions you can make as you build your business. Expensive risks such as creditor claims can be avoided through real estate asset protection. View here some of the common methods to protect your real estate property.
Needless to say, insurance is one way to legally protect your real estate assets. The type of asset being protected will determine the insurance coverage you need. An increase in wealth means you should increase your insurance coverage as well. For comprehensive coverage, you can decide to get an umbrella policy. Contact an insurance professional today and inquire about features of the policy you want to choose for your property.
Getting limited liability for your rental property is also very fundamental to real estate asset protection. By doing this, you ensure your personal assets do not suffer in the event of a lawsuit. Any issues or challenges your business might face will not affect your personal assets. Your business becomes its own entity, and thus debtors cannot claim your personal property. It is also wise to have your commercial assets in different LLCs. By doing this, you ensure that one property facing risk won’t put the rest at risk.
You can also protect your assets through anonymous land trust. This is a good way to protect your property from legal implications. With a trustee, your name will not appear on any records. Lawyers will not be able to trace your properties in the event of a lawsuit. People are also discouraged from filing lawsuits against you with this method. This is because they will need money to reveal your identity even before filing the suit. The cost of pursuing the lawsuit might be more than the compensation they are seeking.
Another great real estate asset protection strategy is titling your home. Being equal tenants with your spouse means you both have indivisible interest in the property. This way, if either of you gets a lawsuit, creditors cannot come for your house because of the interest. This, however, is only applicable to your personal residence. You will have to get an investment property for your commercial assets. Common tenancy is an amazing option for real estate asset protection.