Owning rental properties, flipping run down houses and sitting on undeveloped land are popular ways people use to earn some extra money on the side. The problem is that by owning these types of real estate investments it opens you and your family up to more risk of being sued.  LLCs can help you reduce this risk.
Our firm works with many real estate investors to help them provide their business with a legal structure that will minimize and diversify their risk through (1) the formation of one or more LLCs, (2) the proper titling of that real estate, and (3) advising on how they should operate that business to maintain the legal protections our client is seeking by forming these LLCs.  You must have your have your LLC ready to go before you purchase the property. Deeding a property from your name to your LLC could trigger the due on sale clause in your deed of trust and cause your entire note to become due and payable immediately!
If you already have your property, but are interested in placing it in an LLC, contact us and we’d be happy to provide you with a letter to give to your lender seeking permission to transfer your property into an LLC.
Missouri and Kansas both recognize what’s called a Series LLC. State law allows you to operate an LLC with one or more series LLCs created under the initial LLC structure. Correctly operating separate series LLCs for separate aspects of a single business (i.e. different rental units) can separate the debt and liability of one series from the debt and liability of another series, even though they are a part of the same LLC, yet still allow them to act as a single taxpayer. Simply put, it can diversify your liability.