Sell for More Advice is a weekly blog series that provides no-nonsense tips for commercial real estate sellers.
Holding title to commercial properties in your own name puts you at greater risk for lawsuits.
Some attorneys get paid on what is called a contingency fee, which means that their fee is contingent on them being able to win or settle a case and collect. Knowing this, how many attorneys would take a case where the defense appeared to be broke? You cannot collect from a dry well.
To analyze their ability to collect, attorneys must look into your assets. There is no asset more transparent than real estate. Anyone can look and see what you own and how much debt you have.
If you don’t hold any assets in your name…you appear to be a dry well.
If there was an accident on the property the attorneys could only target assets of the LLC…not your personal assets.
Obviously, insurance is your first line of defense, but many complications arise out of mistakes that are not covered by insurance. Owning properties in your own name could create a target on your back.
Owning properties free and clear
Having debt on your property also makes you less of a lawsuit target. If an asset is leveraged, it at least appears as if there is not much in the way of assets to pursue.
(FREE PROMOTION) Find out how much your property is worth, for free, before you list it for sale. Get the blueprint to sell your property for the highest price the market will pay (click here)
How to get an unfair advantage. Click here to join Sell for More Club today.
Own a business? 90% of business owners don’t know the market value of their business. If you’re considering selling a business, click here for a free business valuation.
About Beau Beach, MBA CCIM
Beau is a tenacious Commercial Real Estate Broker, author and adoring father of four. His clients appreciate his no-nonsense demeanor and his legendary work ethic.
Beau leads Beachwood which is a commercial real estate broker for sellers in the Nashville, Milwaukee and South Florida markets.
He’s the author of the books The 3 Reasons: Why Most Commercial Properties Don’t Sell and True Wealth: What Every Seller Should Know About 1031 Exchanges.
Beau can be reached at 800-721-3287, click to schedule a call or Beau@BeachwoodSells.com