Lending Gurus fail to further explain the importance of asset protection for real estate investors who have chosen to embark on the journey of the real estate business. This is because the end goal is for them to gain the necessary consumers to propel their business.
We are not trying to impose the idea that your Gurus are feeding you with the wrong information, moreover, we want to acknowledge the idea that asset protection is more beneficial than you think it is. A general perspective of Asset Protection explains it as a process of protecting your personal property from risks such as bankruptcy, lawsuits, divorce settlements, and claims.
Here are some of the benefits that you may experience should you choose to protect your assets.
Protects you from a potential lawsuit
Great lawyers can pinpoint weak and unprotected assets of your property making it vulnerable for possible lawsuits. This will not rely on whether or not you did something wrong, however, since it isn’t protected you aren’t capable of taking further actions to protect it.
Insurance might not be enough
If you have read what your insurance would cover with regards to your property, then you may have noticed that there are exemptions and limitations to what they can do. With that being said, since you have already purchased insurance, the added protection to cover damages, situations, and emergencies that are above your insurance can be protected by Asset Protection.
Organize your business endeavor
In the real estate industry, this business is filled with risks and challenges that are beyond what you would expect. It’s because the market, consumer, and colleagues in the field are going through the motion and shift that the industry has to offer. Managing your real estate business as a sole proprietor has tons of disadvantages, and Asset Protection will surely fill these gaps.
Avoid Liability
One of the main yet crucial benefits that Asset Protection has to offer is that it may protect and help you avoid liability. Limited Liability Companies (LLC) are prone to accepting the aforementioned protection because of the added cost and the hassle to process such. This makes them liable for minimal errors seen by asset lawyers and in the end, may lead to losing even more profit.
Always keep in mind that bad things can happen to good people. No matter how much you have already assumed that you are protected with the insurance and papers you have on hand, there is always a chance to get sued. If you can get your business protected as early as now, then you already should. Assets are vital for every entrepreneur, keep your best foot forward to defend yourself from possible lawsuits.
Protecting your asset will surely be beneficial if you deem your property worth the investment made. The value added once an asset is protected provides an added sense of security and importance.
If you are willing to go through all of that and more, feel free to take part in our community here at Real Estate IQ and let’s make those dreams a reality.
Disclaimer: The blog articles are intended for educational and informational purposes only. Nothing in the content is intended as legal or financial advice.
