Keep potential lawsuits at bay by viewing the rental property asset protection checklist we have prepared for you. By doing so, you’ll be able to protect your assets without worry or distraction. The following checklist recommends some protective measures you can take for your real estate investments, cash, other assets, and financial future: Anonymous Land Trust Setting up a Traditional LLC Benefits of a Series LLC Everyday situations to avoid ending up in court The bottom line is that the best asset protection strategies stop lawsuits from happening. This list will help you decide how best to protect your assets. Anonymous Land Trust for Rental Property Asset Protection Anonymous Land Trusts are highly effective but lesser-known instruments that protect your privacy as a real estate investor. One vital benefit that anonymous land trusts provide is that unknown ownership makes it harder to file a lawsuit against you. Here are some frequently asked questions about a Land Trust: What are the parts of a land trust? They are vehicles to help savvy investors hold properties anonymously. An anonymous land trust has three components: a grantor, a trustee, and a beneficiary. How does a land trust work? When you decide to form a land trust with Royal Legal Solutions, we serve as your trustee and manage the trust. You are the beneficiary which means you (1) are not publicly identified and (2) can enjoy the profits from your property. Read “Anonymous Land Trust for Real Estate Investors” and get more details to help you decide if this sound legal strategy is the right solution. Setting Up a Traditional LLC Limited Liability Companies (LLCs) legally separate you from your business. Benefits of an LLC: Guarantee of personal security Simple to create, simple to manage Relatively inexpensive We want to provide accurate information so you can make a sound decision. To that end, here are the most common drawbacks to using a Limited Liability Company: Puts “all your eggs in one basket” Expensive tax preparation Not replicable on its own Read “Texas LLC for Real Estate Investors” for more information. Ultimately, LLCs are okay for one asset, but a Series LLC is better for multiple assets. Benefits of Setting Up a Series LLC for Rental Property Asset Protection Series LLCs, a “parent-child” structure that ensures protection for your assets. Here are the steps of the structure: Set up a Series LLC (this is the parent) Create individual LLCs (these are the “child”) Benefits of a Series LLC: “Child” LLCs have no additional filing Further minimizes your liability Ideal for investors with multiple properties or types of assets You might be having questions about a Series LLC. Here are the most common questions we encounter about this legal structure. How does the Series LLC protect my assets? Each asset is isolated from others. How can I minimize my losses in a critical case? The Series LLC structures your business in such a way that only one asset is at risk in any given lawsuit. Why would I need anonymity? If people think you own nothing, they have no motivation to sue you. Thus, the anonymity of the Series LLC shields you from lawsuits. Read “Series LLC for Real Estate investors” to get a detailed account of how a Series LLC might benefit you. Overall, Series LLCs primarily help real estate investors with multiple properties or types of assets. Avoid These Common Situations to Stay Out of Court When you sign a lease with a tenant, you begin a legally enforceable contract that covers the terms of their tenancy. Your tenant pays rent, and you conduct repairs and maintenance in exchange. When your tenant feels like they have no options, they might seek to sue you. You don’t want to end up in a lawsuit, so make sure to: Keep the living environment habitable Refund security deposits when the tenant has fulfilled their obligation Keep the property safe and injury-free Respect your tenants’ privacy Follow eviction laws Adhere to the Federal Fair Housing Act Keep following state tenant laws Avoid credit abuse Use this checklist as a guide to help you decide what type of asset protection is right for you. No matter what level of real estate investor you are, you need to protect your assets. Make sure to apply the lessons from this checklist today. Bottom Line: Protect Your Assets As you continue along your real estate investing journey, ensure that you protect your assets with the right financial strategies and business structures in place. Learn how to get bullet-proof asset protection with our FREE, 5-part educational series for savvy real estate investors. Request your access to the Royal Academy Asset Protection Vault today!