Suppose a real estate investor gets in a car accident and is sued because the other driver died in the accident. Suppose that a real estate investor is sued in a wrongful death case and the plaintiff obtains a million dollar judgment. How can the plaintiff collect the judgment from the real estate investor? The plaintiff can try to obtain the money that the defendant has in the bank. If there are insufficient funds in the bank account, the plaintiff in the wrongful death case can go after the defendant's non-exempt assets, including real estate investment properties.
My friend David J. Willis, J.D, LL.M., wrote a fantastic book called: "Real Estate Law & Asset Protection for Texas Real Estate Investors." I love this book because I often get calls from people that are looking for the right kind of business entity to: (1) use a liability barrier to minimize personal exposure and maximize asset protection; (2) organize and manage one or more business; and (3) utilize tax benefits. This book covers those issues and more.