Find the Right Insurance
Your insurance is going to be incredibly important in the coming years, and you need to make sure that you invest in the right policies. Even if you don’t plan on having any tenants on your property, you must still have a solid insurance policy.
Without the correct insurance policy, a natural disaster or personal injury case could end up costing you huge sums of money.
Work with an Investment Group
There are quite a few reasons why many real estate entrepreneurs join larger investment groups. In addition to giving you access to more resources, an investment group could also limit your risks. Most investment groups are LLCs, and that means the individual shareholders won’t be responsible for any major issues with the properties.
You can also find a group that has an attorney on retainer, and that legal professional is going to be invaluable if a lawsuit takes place.
Create a Land Trust
Also known as a title holding trust, a land trust is a legal entity that could protect you and your assets from a wide variety of risks. When you use a land trust to purchase a piece of property, the title of that land won’t actually be in your name.
While you can still manage that property, other parties won’t be able to go after your personal assets if any liability issues occur. As an added bonus, land trusts can also be paired with LLCs to further protect your assets.
Limit Your Spouse’s Liability
Even if your spouse is going to help you manage the property, you should still separate your family’s assets from your business enterprise as much as possible. In most states, lenders can’t go after a spouse’s assets unless they co-signed for the credit cards or loans.
The homestead exemption should keep your primary residence safe as well, but you might want to speak with a tax adviser about that particular exemption.
In addition to these few tips, you should also make sure that you remain patient and never overextend yourself. It might be tempting to jump at the first piece of real estate that you find, but you need to consider all of the variables before you invest any money.
Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most of her time hiking, biking, and gardening. For more information, contact Brooke via Facebook at facebook.com/brooke.chaplan or Twitter @BrookeChaplan
