Holding LLC Structure Mistakes That Could Cost You Everything

Summary

This video details a critical asset protection mistake made by real estate investors: using their holding LLC (e.g., a Wyoming LLC) to also act as their property manager. Attorney Clint Coons explains that this co-mingles the asset protection function with the high-risk operational function, creating a direct path for a lawsuit at one property to threaten the entire portfolio held by that LLC. The correct structure involves creating a separate, distinct management entity to handle all tenant-facing activities, thereby isolating operational liability from your core assets.