Keys to success in real estate investing include:
Management. If you own investment property, it has to be managed, either by yourself or by a hired manager. As long as you own a relatively small property, such as a rental house or an apartment building with a few units, you may prefer to handle management on your own so you can keep an eye on your real estate. If such an effort becomes too time-consuming, it may make sense to hire a property manager.
Risk reduction. Whenever you own investment property, you assume certain risks. A tenant might sue you if he suffers an injury; violations of environmental regulations can be extremely expensive. Therefore, you may be better off owning the property through a limited liability company (LLC) rather than in your own name. An LLC limits your personal liability.
The bottom line is that you need to hire an experienced attorney when you make a real estate investment. Paying legal fees upfront can save you a lot of grief in the future.
