There are various ways for buying a real estate investment property. You can buy it under your name. If you want anonymity and protection from liability, you can buy under a real estate trust or a limited liability company (LLC).

Before you pick a property purchasing option, you should consider the type of property you want to buy, the number of tenants you will have, and your future investments.

patent

Purchasing Under Your Name

Buying an investment property under your name will save you the extra costs of hiring an attorney. Liability insurance is also less expensive when you buy it under your name. The insurance you pay for a property under a real estate trust or an LLC could be twice the price you have to pay for a property under your own name. It would also be easier to get a mortgage with a property under your name, because banks will have something to pursue if you fail to keep up with your mortgage payments.

One of the main disadvantages to having your investment property under your name is having your personal assets vulnerable to lawsuit risks. Make sure you have a good insurance policy to protect your personal properties.

Purchasing Under Real Estate Trust

A real estate trust is a great option if the owner wants to remain anonymous. However, with recorded documents, such as tax declarations, going online, anonymity may be difficult with this one.

If there are more than one owner of the investment property, it would also be best to put the property under real estate trust. This will also help owners avoid death trust and also make it easier for them to transfer ownership to their heirs.

One of the major disadvantages to this, however, is the expensive legal fees you have to pay in case of modifications made by the partners, or changes in the estate planning.

Buying Under LLC

LLC is more favourable among investment property buyers, because it gives them ample amount of protection and security.

If the owner of the LLC is subjected to lawsuit, only the properties under the LLC will be at risk.

This also provides a good deal of anonymity to the owner.

LLC will also give the owner an extra layer of protection if ever the owner chooses to use the investment property as a commercial space. The extra layer of protection is needed for a space with more people coming in and out.

To make sure you buy an investment property using the right way appropriate for your needs, it is always best to consult or hire a lawyer.

Related Posts
What is Plaintiff lawyer?
If you are dealing with some sort of legal turbulence in the form of physical harm or financial trouble with corporation, hospitals, business organization, insurance companies, then, a plaintiff lawyer ...
READ MORE
How to get workers compensation lawyer
For those of you who are in job need to have a clear idea about what you as an employee are liable for. And by this aspect it does not ...
READ MORE
How to get affordable personal injury lawyer
Injuries can happen to anyone, anytime and even when you hate to think about it there is the probability that even right now you might be a bearer of the ...
READ MORE
How to get affordable legal services?
Life is beautiful until and unless you get into some sort of medical or social or personal or legal problems. When any of such problems come across, the first impact ...
READ MORE
How to get accident injury claim
Accidents happen in life suddenly. They have the capacity to completely destroy your life. First there is the mental trauma it leads to and then there is loads of medical ...
READ MORE
How to file for Bankruptcy ?
If you are one of such victim facing huge debt, and searching information desperately for the processes of "How to file for bankruptcy ? ", you are about to find ...
READ MORE
Consumer Rights Law
Consumer Rights Law is a legal area that covers a large body of laws passed by the government to protect consumers by regulating many of the following business transactions and ...
READ MORE
Corporations and S Corporations vs. LLCs
How do you want your business to be structured? Do you want it to be a Limited Liability Corporation (LLC) or an S Corp (based on the subsection S of ...
READ MORE
fight speeding ticket
Each one of you reading this is well aware of the speeding ticket. And it is a probability that you too might have got one of those sometime or you ...
READ MORE
Affordable DUI attorney
Traffic violations don't seem to be all minor offences since they need major ramifications within the future. Reckless driving causes most of the traffic accidents and to stop that, traffic ...
READ MORE
What is Plaintiff lawyer?
How to get workers compensation lawyer
How to get affordable personal injury lawyer
How to get affordable legal services?
How to get accident injury claim
How to file for Bankruptcy ?
Consumer Rights Law
Corporations and S Corporations vs. LLCs
fight speeding ticket
Affordable DUI attorney