Our message to buyers is clear – Investors Avoid personal Liability – Create Asset Protection.

Investors who are buying real estate should be aware that owning property in their name exposes them to liability. The most substantial business reason to create a legal entity (like a corporation, trust, partnership, limited liability company, etc.) to own your property is to protect yourself from personal liability, i.e. to provide asset protection. By forming a legal entity you are separating that legal entity from yourself, an individual.  This legal entity now has the legal right and power to make all the decisions that an individual could make, but with the added feature that the individual investor(s) are not personally liable for its actions. For example, if a legal issue arises out of the business being conducted by the legal entity, liability for its activities is limited to the assets of the company, i.e. your investment, as the claimant’s only recourse would be against the legal entity. 

 One very common legal entity that investors use for asset protection is a Limited Liability Company, aka LLC.  A Limited Liability Company provides considerable asset protection to members carrying on a business like property ownership. Members of the company do not have personal liability for the enterprise – absent a personal guaranty.  Instead, liability for company activities is limited to the assets of the company, i.e. a member’s investment.   An LLC also provides some protection from the judgment creditors of the individual limited members if a judgment is entered against the member after the creation of the company, and also protects the members as a result of the actions, or inactions, of another member by dictating the rights of a member’s creditor.

 When it comes to managing your single, multi family, REO, Second homes or commercial properties, rest easy – Octazon Management has got you covered and can protect your assets and take away your property management headaches and distractions through our full-service or back office property management services.

When providing management services to Realtors, Octazon will NOT provide the leasing, rentals or sales– so you never have to worry about losing control of your relationship with the owner. 

With Octazon, we bring order to residential property ownership.  Call us 888-324-9528 or email us at info@octazon.com . Check us out @ www.octazon.com 

Posted by: marvinkatz on January 16, 2014