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Turning Buyers Into an LLC
Mon Dec 25Creating a separate legal entity for buying a second home is a smart way for ordinary households to protect themselves
If you’re working with a couple interested in buying a second home as an investment property, you might suggest they talk to a lawyer about setting up a limited liability corporation or other legal entity before they buy. That way, if they’re sued by someone who was on the property after they bought it, they can limit their damages and protect their personal assets against losses.
Suppose a contractor they hire makes negligent repairs to a deck and it collapses while tenants and guests are having a barbecue. The judgment in a case like this could easily exceed the equity the owners have in the property and even the coverage limits on their insurance policy.
Or perhaps they rent the property to a person who owns a dog not covered in a typical landlord policy and the dog bites someone on the property. State Farm, for example, determines risk based on a dog's bite history not its breed. The company paid $121 million in dog bite claims in 2016 at an average of $33,000 a claim. A claim of that amount might exceed the equity the homeowners have in their property. That could make their personal assets vulnerable to the judgment.
Or let’s say the carbon monoxide detector is faulty and the property has a 20-year-old furnace that develops cracks, releasing gas indoors. Tragically, a family of four staying in the property is killed. The owners could face four wrongful death actions caused by negligence.
Gravity of Risk
These are rare occurrences, to be sure, but they point to the gravity of risks that investment property owners can face. In fact, the scenarios illustrate one of the main differences between real estate and other types of investments like stocks or bonds: real estate can carry risks that exceed the investment in the asset.
Of course, an owner’s first layer of protection is insurance, but owners might fail to recognize that their losses can exceed coverage limits. Or there may be exceptions or carve-outs in the coverage that exclude or limit the losses. These gaps in coverage might expose the owner to unlimited liability. In today’s litigious world, $100,000, $300,000, or even $500,000 liability coverage may be inadequate. Also, owners converting their home to an investment property might not think to take out landlord or vacant property coverage.
To get the right amount of protection, buyers should strongly consider a personal liability umbrella policy with $1 million to $2 million in coverage. But they should also consider forming and running a corporation or LLC. The type of entity they can form varies and is governed by state law, but nearly all states allow incorporated entities like limited liability corporations, partnerships, C corporations, and subchapter S corporations.
Pricing Considerations
Deciding which type of entity to set up and how to structure it should be done with advice of counsel. The process may not be expensive. Depending on the area and particularities of the household, the legal work can be done for a few hundred dollars. There are also do-it-yourself forms online, but self-help isn’t recommended; these entities, whether for your own investments or your clients’, have to be set up correctly to get the maximum protection.
Investing in real estate can be a smart decision. The right property can outperform other investment vehicles. But because real estate investment comes with potential pitfalls, it makes sense to have sufficient insurance and for investors to consider setting up an LLC or other type of entity to separate their liability from their personal assets.
- Handy List of Local Horse People with Business we can use!
Mon Dec 25- If you are a local horse person and want to be on this list, please email us at office@lihorseproperties.com. This is only for horse people-owned companies. If you wish to include links to a website related to your business, please send the link as well.
631-612-7762
Specialization in Farming Needs
Farm Fencing
Aviary Build / Construct
Water Hydrants
Electric
Ground Leveling
Land Clearing
Dumpster Rentals for Manure or Other Needs
- Long Island Barns LIST
Sat Dec 25Athlete Acre (Indoor)
training, Lessons, Boarding, Sales
Bobby Bonamo:
(631) 979-7304
Like us on Facebook;
https://www.facebook.com/athleteacres
665 Blydenburgh Rd, Hauppauge, NY 11788
Artemis Training and Sales - HAS INDOOR
Specializing in the training and sales of young horses and ponies on Long Island. Freelance instruction at your own facility. Experience starting young/green horses and prospects as well as training in the pony hunter and equitation divisions.
Located at: 15 South Street, Manorville, NY 11949
Contact: Kalyn Fogarty 631-428-2189 / kalynfogarty@gmail.com
Babylon Riding Center HAS INDOOR
Lessons, Therapeutic Riding, and Trail Rides
1500 Peconic Ave, West Babylon, NY 11722
631-587-7778
babylonridingcenter@gmail.com
Click Here For Their Website!
Bethpage Equestrian Center
499 Winding Road
Old Bethpage, NY 11804
516-845-1000
Lessons, Boarding, Training, Trails
Big River Barn Rescue
Trail Riding, Horse Rescue and Recovery Center
1864 Muttontown Rd, Syosset, NY 11791
516-650-0016
janet@bigriverbarn.com
Click Here For Their Website!
Bridgette Harwood
Lessons, Boarding, Training, Camps, Horsemanship Classes, Volunteer Program, Pony Parties
197 South St, Manorville, NY 11949
516-425-0693
Click Here For Their Website!
Brookville Farms Ltd
Private Boarding Farm, Connecting Trails
1472 Cedar Swamp Rd, Glen Head, NY 11545
516-626-9695
Choya Farms HAS INDOOR
120 Dayton Avenue
Manorville, NY 11949
631-395-2710 Kelly
Lessons, Boarding, Training
Crescent Farms
90 crescent st
Yaphank ny 11980
Boarding, large arena, and trails
631-346-2141
Crystal Brook stable
141 Hammond Ln., Centereach, NY 11720
Boarding, lessons, training
Family atmosphere
631-786-6101
Days Made Farm
Old Brookville, NY
(646)387-8419 Omri Adut
Offering Quality Instruction/Showing/Leasing/Sales
DDR Farm
412 Sweet Hollow Road, Melville NY
Lessons, Training, Trail Riding, Boarding, Horse shows- schooling through A circuit, English & Western
Diana Russo (516) 238-4767
Derby Hill Farm HAS INDOOR
361 Deep Hole Rd, Calverton NY - Hunter/Jumper show barn
Training, boarding, and sales
Beginner through advanced lessons
(516)768-5612
Fair Isle Farm
62 Rt 106 Glen Head, New York 11545
Lessons Horse showing Training Boarding Leasing Sale
516-776-7975
FIRST BLUE LLC - HAS INDOOR
1258 Middle Rd, Riverhead - 2035 Scuttlehold Rd, Bridgehampton
BOARDING, TRAINING, LEASING & SALES
631-537-1919
FTF Equine Services, LLC.
7 Equine lane, St.James, NY
516-665-7508
Stephanie Proffe
Boarding & Lessons
Gold Coast Equestrian
62 Hegeman's Lane
Old Brookville
516-801-2152 office
631-377-2449 text
Boarding, lessons, sales, IEA team, summer & holiday camps
Hedgewood Farms - HAS INDOOR
4000 Main Rd, Laurel
631-926-3118
Dawn Hummel
HILLCREST SPORT STABLE - HAS INDOOR
1219 Middle Rd, Riverhead
Lessons, Boarding, Training
HUNTER PINE FARM - Dawn Fieschel
https://www.facebook.com/HuntersPineFarm
431 Head of the Neck Rd, Bellport
LESSONS, BOARDING, TRAINING
516-650-3566
Hidden Pond Stables - HAS INDOOR
197 North St, Manorville, NY 11949
Training, Lessons, boarding, Shows
contact:Carolyn Jolly
631-433-6513
Island Hills Stable - HAS INDOOR
Lessons, Boarding, Camp, parties
25 Rocky Point ave, Middle Island
https://www.islandhillsstable.com
Knoll Farm (INDOOR)
849 Suffolk Ave
Brentwood NY 11717
Boarding, indoor arena, full service, lessons, school program, hunter/jumpers, and dressage.
631-435-1880
Knollfarm.com
https://m.facebook.com/knollfarmny/
Lisa Rose
Rosemoor Equestrian
(631)-375-5236
https://rosemoorequestrian.com
McIntyre Show Stables - HAS INDOOR
MSS offers boarding, training, showing, and sales and leases for riders who are just starting out to the avid competitor.
Located at: Old Westbury Equestrian Center (203 Store Hill Rd, Old Westbury)
Contact: Megan McIntyre 516-507-9287 // meganbpetrou@yahoo.com
Website: https://www.mcintyreshowstables.com/
New York Equestrian Center HAS INDOOR
Lessons, Boarding, Summer Camps, After School Program, Trail Rides, and Pony Parties
633 Eagle Avenue, West Hempstead, NY 11552
516-486-9673
mynyec@gmail.com
Click Here For Their Website!
North Shore Equestrian Center - HAS INDOOR
Lessons and Boarding
720 Northern Blvd, Greenvale, NY 11548
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516-626-9714
Click Here For Their Website!
OCEAN'S EDGE FARM - HAS INDOOR
2 Meadow Ct, Bridgehampton
BOARDING - TRAINING - SALES
Jenn Bowery - 516-459-6220
OLDE Towne Equestrian Center
471 Boyle Rd Selden NY 11784
lessons boarding training, sale horses
Lessons 2 years old and up
Myrna Treuting 631-513-0261
https://www.facebook.com/myrna.treuting
Outlaw Acres
819 Sylvan Ave, Bayport, NY 11705
(631) 445-2412 Ask for Rita
Lessons, lease, Training
Parkview Riding Center (INDOOR)
Lessons, Boarding, Horse Leasing, Summer Camps, Trail Rides, Clinics, and Petting Zoo
989 Connetquot Ave, Central Islip, NY 11722
631-581-9477
Click Here For Their Website!
Rising Stars
289 Pine Acres Blvd
Dix Hills NY
Beginner through advanced, mini-lessons for youngsters available
516 532-3946
Millie Roth Palumbo
ROCKY HILL FARM - HAS INDOOR
1219 Middle Rd, Riverhead NY
Beginner through Advanced - hunter/jumper - board, training, lessons
631-553-6353 - Chuck & Meigan Rocco
C. Lee's Ponies at Royalton Farms - Has Indoor
Schulz Stables LLC @
Saddle Rock Ranch Has Indoor
41 Coram Swezeytown Rd,
Middle Island NY 11953
Office: 631-804-2006
Jillian Schulz
Lessons, Therapeutic Riding, Summer programs, Afterschool sessions, Homeschooling programs
6 String Stables
Danielle Ambrecht
1206 Connetquot Avenue
Central Islip NY 11722
(516)244-6262
Boarding
Sagamore Hill Stables - HAS INDOOR
Ross Kaplan
Lessons, Boarding, Training, Horse Leasing, and Showing
929 Fort Salonga Rd, Northport NY
631-549-9178
Click Here For Their Website!
Stanhope Stables ( INDOOR)
LESSONS, BOARDING, TRAINING
Nancy Henderson
7 Downs Road Huntington, NY 117437
Suffolk Equestrian Academy HAS INDOOR
Lessons, Boarding, Trail Rides, Horse Sales and Leases, Summer Camps, and Parties
188 Bellport Avenue, Medford, NY 11765
631-348-1948
suffolkequestrian@gmail.com
Click Here For Their Website!
Skye Acres Equestrian Center HAS INDOOR
361 Barton Ave Patchogue NY 11772
Lessons, boarding, indoor and outdoor
631-289-9737
Sundance Stables - HAS INDOOR
Boarding, Lessons, Training, Sales, Lay-ups
37 North St, Manorville, NY 11949
Eric - 631-687-0093
Like Us on Facebook:
https://www.facebook.com/pages/category/Local-Business/Sundance-stables-152007328165121/
Ten Wins LLC.
Laura Hagen
Brentwood NY. 516-297-7380
Lessons, training, shows, and sales
Thady Quill Farm - HAS INDOOR
62 Hegeman's lane, old Brookville NY 11545
516.445.9939
Lessons training sales and boarding
Twisted Acres Ranch
132 E. Woodside Avenue
Patchogue, NY 11772
(516)220-3827
Boarding
Lessons
Rehabilitation
West Lane Thoroughbreds
Aquebogue, N.Y.
Joe Trezza 631 334-1216
Facebook:
https://www.facebook.com/pages/West%20Lane%20Thoroughbreds/382673129220159/
Whispering Pines Farm
204 buffalo ave Medford, NY
Dianne 631 379 9459
Boarding
Willow Rock Farms
Lessons, Boarding, and Trail Rides
144 Sportsmen St, Central Islip, NY 11722
631-860-1898
Winding Hill Stables
Lessons, Boarding, Training, Horse Leasing and Sales, and Summer Equine Studies
386 Bread and Cheese Hollow Rd, Northport, NY 11768
631-923-0191
windinghillstables@gmail.com
Click Here For Their Website!
Windwood Farm (INDOOR)
Lessons, Boarding, and Training
1219 Middle Rd, Riverhead
631-398-4873
LIKE US ON FACEBOOK
https://www.facebook.com/Windwood-Farm-151648228591412/
Great Strides Long Island (Indoor)
Riding Lessons, Therapeutic Riding, Summer Program, Pony Club, Parties
41 Coram-Swezeytown Road
PLEASE EMAIL US if your barn is not listed
HAPPY NEW YEAR TO YOU ALL
