First, as you have already discovered, it makes sense to separate your “safe” and “risk assets” into separate legal entities. Your U.S. “safe” investments and real estate should be in a separate LLC also. The LLC will either have one or two members as described before. The important question becomes, is it recommended to have one LLC for each piece of real estate? That depends upon a few factors including:
• Are you planning to flip the real estate or hold onto it to rent out?
• If you are planning to flip, one LLC is ok.
• If you are holding onto the real estate and planning on renting it out, there are two other factors to consider: your total equity/your net worth.
This means if you take your total equity in all the U.S. real estate and divide that by your total net worth, the higher that percentage, the more protection required. For example, let’s say you purchase 5 U.S. properties with over $1,000,000 of total value. Your total net worth including the 5 properties is $1,750,000. That means your ratio is $1,000,000/$1,750,000= 57%. That means that your U.S. properties are 57% of your total net worth. If you only had one U.S. LLC for all 5 properties and the LLC was sued directly and your insurance did not cover everything, it is possible you could lose over 57% of your net worth in one lawsuit! In this case, it would make sense to have AT LEAST 2 LLCs for the properties and put 2 properties in one and 3 in another.