There are many important reasons to own investment real estate in a legal business entity. Asset protection is one main reason. If someone is injured on the property, using a business entity helps insulate the individual owners from personal liability. The injured person would sue the business entity owner instead.
Threats of a Lawsuit? We can help!
Imagine you have a restaurant business and one day one of the guests while sitting on a chair sadly falls backward and part of the seat collapses unexpectedly. The restaurant then gets that threatening letter from a law firm representing the injured guest and claims heavy injuries and losses.
SQUATTERS: a squatter is someone who is in the rental property or asserting a control over it, but did not have an agreement with the owner or other tenants of the property to do so. Typically, this is someone who either breaks into the property or simply sees a property that is vacant and walks in and assumes it as their own. Sometimes, they will get the power company to open an account for them, and they will have full utilities in their name. And sometimes, they will cut into another properties’ power source and steal it.