Many small real estate owners (1-4 unit properties) are confused about the best entity to hold their real estate, with potentially disastrous consequences.

In fact, the majority of small property owners still own their properties in their personal names.

Perhaps they read a book or take a course on asset protection. They become aware of the disastrous consequences that can befall property owners who own property in their personal names.

All it takes is a couple of mouse clicks in the age of the Internet to get a complete listing of every property owned by you in the entire county! You can lose everything you own, not just the real estate, to judgment creditors, lawsuits, liens, the IRS, etc.

It is a proven fact, that those who can be shown to own property are at a far higher risk of being sued than those who do not own property.

Then they have to decide. Should they use a corporation to hold their property, a C corp. or an S corp? How about an LLC or a partnership?

There are serious downsides to using the wrong or inappropriate entity.