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If you do have a property paid off free and clear or somebody has a tremendous amount of equity, that property should be held in a couple people are asking the question, do you have a separate LLC for each property? No, I don’t. And that’s a personal decision. Here’s the answer, guys. Everybody on YouTube is gonna give you a different answer. Clint Koons gives you a different answer, then you talk to somebody else gives you a different answer. Talk to Tom wheelwright gives you a different answer.
Now this course, here’s the appropriate answer. How do I know whether I should put every property into a separate LLC or not? How do I know that it’s based on your personal risk tolerance for me, we put between six and eight properties into every LLC why one my risk tolerance is pretty high, too. I have an umbrella policy on all my property. So even if one property burns down and it goes through the insurance policy, guess what I have an umbrella policy that kicks in and pays for that property.
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Second thing is most of my properties. If somebody Sue’s that LLC most of my properties have a significant debt on them right because I’m buying property subject to or seller financing. So these aren’t houses that are paid off free and clear. However, if I have a house paid off free and clear, which I don’t suggest you ever have a house paid off free and clear. That’s my strategy is the anti Dave Ramsey strategy. It’s the Robert Kiyosaki strategy.
If you have a property that’s paid off free and clear, it is way better for you to pull out a line of credit against that property and go invest in three or four other properties that significantly grow your assets way faster. But if you do have a property paid off free and clear or something it has a tremendous amount of equity that property should be held in a trust that is essentially by itself okay. Low equity equals low liability if somebody Sue’s you and they find out you don’t have equity in the property, what are they gonna get? Not gonna get anything.