Kim Lisa TaylorSecurities Attorney, Founder, Syndication Attorneys, PLLC · Corporate Securities Attorney, 2x Best-Selling Author, Nationwide Speaker | Private Placement

Protect Your Properties: LLC Strategies Explained

25 Jun 2024 · 1 min

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In this segment of the video, Kim Lisa Taylor explains why real‑estate investors should avoid placing all of their holdings into a single limited‑liability company (LLC). She warns that if an LLC that owns many properties is sued, the loss could extend to every property under that entity. To mitigate this risk, she recommends structuring ownership so that each LLC is limited either by the number of properties it holds or by the total asset value it controls—she cites a practical rule of capping an LLC’s assets at roughly $3 million. This approach isolates potential liability to a manageable subset of assets, protecting the broader portfolio.

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or that LLC was to be sued, there is a limited amount of loss that can be had with that LLC. You never want to just put every property in that LLC, because if it owns 10, 10 properties and you get sued, you could lose all 10 properties. So some people either limit it by a number of properties, or they will limit it to a value, saying that, okay, We won't have an LLC own more than $3 million asset-wise.