Protect Your FIRE Portfolio! Asset Protection, Insurance and Potential Pitfalls | Bigger Pockets Video

Episode #646

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Do you really need an LLC for rentals? What kind of insurance should you get? With so many questions (and confusion) surrounding asset protection for real estate investors, we’ve brought on an expert to set the record straight so you can protect your assets—without going overboard or breaking the bank!

Welcome back to the “BiggerPockets Money” podcast! Today, we’re chatting with real estate attorney and fellow investor Bonnie Galam about the nuances of asset protection. The truth is that there are two sides to this coin, but most investors only focus on the defensive or “reactive” side. Bonnie will show you the keys to 360-degree protection—like setting up strong legal structures before problems arise and the essential documentation you should have from day one.

You’ll also learn about the potential pitfalls of equity partnerships, how personal events can put your properties at risk, and why car insurance and prenups matter more for your portfolio than you might think. Asset protection doesn’t have to be complicated, but it does need to be strategic, and this episode will help you prioritize what’s important now, what can wait, and how to create a legal framework that evolves as your real estate portfolio grows!

00:00 Understanding Asset Allocation for FIRE
05:05 Goals and Strategies for Asset Protection
11:05 Navigating LLCs and Insurance Policies
15:35 Simplifying Asset Protection for House Hackers
20:25 Cost Considerations in Asset Protection
21:59 Managing Risks: Car Accidents and Insurance
29:22 Balancing Risk Tolerance and Insurance Needs
30:18 Understanding LLCs and Umbrella Policies
32:45 Common Legal Risks in Real Estate Investing
37:40 Navigating Subject-To Deals
41:43 The Importance of Partner Due Diligence