"You're going to lose everything you own," the speaker solemnly warned the audience at a recent real estate investment program.  "We live in a very litigious society," he continued; "you need asset protection." Real estate investors, as a group, will flock to hear speakers talk about the need for what is commonly known as "asset protection."  They will spend hundreds, if not thousands of dollars setting up elaborate business entities (the LLC - "Limited Liability Company" - being the most popular), in an effort to avoid "losing everything."  Ironically, many new investors spend more money on "asset protection" than they do on real estate.  Sometimes they end up with all sorts of asset protection entities, but no assets to protect. There is a more rational and practical approach to asset protection.  Setting up the correct business entity to allow you to achieve your real estate investing objectives is both important and necessary.  The correct entity will allow you to take full legal advantage of tax benefits and provide a structure for running the business.  Properly established and registered, the entity will allow the investor to work with investment partners, obtain financing, and provide a basis for determining the relative percentages of ownership...

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