Are you considering investing in real estate, but wondering if real estate investors need an attorney? Or maybe you have been investing in real estate for a while and realized you have grown a lot of assets that need protection. Either way, here are a few things to keep in mind as you decide whether or not you should hire a lawyer.
Attorneys Help Real Estate Investors Protect Assets
Owning real estate isn’t easy. If you don’t have a property manager, you’re having to do a lot of things on your own. For instance, you must find tenants, collect rent, manage maintenance contractors, etc. It’s not too bad if you only own a few homes, but gets to be an ordeal as your portfolio grows.
Doesn’t it make sense to protect everything you’ve put into these properties? Each property is like a small business, and you don’t want to lose that business, right?
Unfortunately, without the proper legal structure, you may be at risk. If someone gets hurt on your property and you’re found at fault due to negligence, you may get hit with a hefty lawsuit that takes your personal assets. Even if you have all of the properties under a separate legal entity such as an LLC, you may end up losing everything in one swoop.
Instead, a lawyer can help you protect the properties by advising you on better ways to protect your assets. For example, they may recommend you create a separate LLC for each home. That way even if there is a lawsuit, you’re only risking the loss of one property instead of everything.
Lawyers Help Real Estate Investors with Big Deals
When you first start investing in real estate, you’ll probably stick with single-family homes. Many investors choose to always stay with these types of properties since they’re relatively easy to buy and understand.
But what if you’re interested in bigger deals? For example, maybe you want to buy or build an apartment complex. That’s a different type of transaction compared to buying a small 1,600 square foot home.
Even though lawyers are ideal for all types of real estate deals, having an attorney available for large ones is especially important. They can help identify loopholes or a poorly written contract and protect you from a lot of heartaches and lost money down the road.
Attorneys Help Settle Landlord-Tenant Issues
Perhaps the most important reason to get an attorney is to help settle landlord-tenant issues that arise. As a landlord, there are certain things you’re legally allowed to do and not do. An attorney will advise you on how to take action in certain disputes and make sure you don’t get yourself in trouble.
During these tumultuous times with the coronavirus, this is especially important. With millions of Americans out of work, a lot of people are struggling to pay rent. But before you just kick your tenants out, make sure you consult an attorney to see what your options are and if you’re legally allowed.
Do real estate investors need an attorney? The short answer is yes. We work hard to protect your assets and make sure you’re able to devote your time and energy to what you do best. Give us a call at 714.456.9118, we look forward to hearing from you.