How to Protect Your Real Estate Holdings

If you own real estate and you want to protect your personal assets, you should set up a real estate holding company. This company will protect your assets as well as the properties you invest in. Once you have set up your company, you will need to find investment properties that fit your investment goals and budget. Then, you should select a lender and obtain a pre-approval letter. This letter will be required when you are ready to look at properties and make offers on them.


Setting up an LLC for your real estate holdings can be a wise investment. The benefit of doing so is that it can help you minimize your personal liability in case of a lawsuit. An LLC protects your assets by creating a barrier between your personal assets and those of the company. In addition, it can also help you avoid having to defend your personal assets in a lawsuit.

While you can use an LLC to own and manage your real estate holdings, it is important to set up a real estate holdings LLC before you purchase your first property. This will help ensure that you get the proper protections when you’re starting the business. You can also transfer the property to the business if you need to, but you may want to talk with Bill Bhangal an attorney first.


Using a C-corp to own real estate can be a mistake for tax purposes. Not only do C-corps have to pay double tax on any gains, but shareholders of C-corps also have to pay franchise tax in some states. There are some advantages to owning real estate through a C-corp, including being able to depreciate the property as well as take the deduction for real estate costs.

Another disadvantage of owning real estate through a C-corp is that the sale process is complicated. Many buyers will want to buy the business and lease the real estate, so the sale of the C-corp can be complicated. Furthermore, because the sale of a C-corp can result in double taxation, it is advisable to seek professional tax advice before selling real estate holdings through a C-corp.


A GP or Limited Partnership for real estate holdings is an arrangement in which an investor contributes capital to a real estate investment and shares in the cash flow and profits from the real estate. While the LP typically contributes money to the project, the sponsor is expected to manage day-to-day operations and handle most of the “heavy lifting.” GPs, on the other hand, are required to put in more work during the investment cycle and often take additional risks. For example, they are required to provide various types of guarantees to lenders. This structure also creates a symbiotic relationship between equity investors and GPs.

Moreover, an LP can transfer its interests to future generations free of estate taxes and inheritance taxes. For example, an LP can be set up to provide assets to future generations that are growing in value quickly.

Separate insurer account

Insurers are required to maintain a separate account for the assets they receive from each class of insurance business. These separate accounts must not be combined with the assets of the insurer’s general account or any other type of account. A separate account is also required if the insurer insures risks that are located outside the United States.

The assets in separate accounts must be reported separately, and they must be insulated from creditors in the general account. The separate account must also clearly identify all assets that are not measured at fair value.

Private REIT

A private real estate holdings REIT is a company that invests in real estate assets. The shares of private REITs are not traded on national exchanges and are not registered with the SEC. Instead, they are issued under various exemptions from securities laws. Private REIT securities are sold through brokerages and financial advisors and may carry a high upfront fee, as much as 15%. This fee pays for sales commissions and marketing costs.

Private real estate holdings REITs have many benefits. They offer investors access to a large pool of real estate assets without the hassles and operational challenges of running their own properties. A REIT also offers lower investment minimums and a lower risk profile, making it easier for investors to enter the real estate market.

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