The Two Dumbest Things Serious Investors Skip

and why you shouldn't

May 28, 2025

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The 2 Dumbest Things Serious Investors Skip (and Why You Shouldn’t)

I’ve coached and worked alongside hundreds of real estate investors.

I’ve seen fortunes made, and I’ve seen preventable disasters.

If you ask me:

👉 What are the two dumbest things serious investors skip?

👉 I can answer in a heartbeat:

Umbrella insurance and proper entity structuring.

🛡️ 1. Umbrella Insurance

You may have general liability coverage. That’s great.

But one serious accident, one tenant injury, one contractor mishap, or one “freak incident” lawsuit can blast right through your policy limits.

Umbrella insurance is your backstop. It adds extra layers of protection after your general liability coverage runs out.

The best part? It’s relatively inexpensive (often $300–$800 per year per $1 million of coverage).

Cheap peace of mind for catastrophic risk.

👉 Serious investors carry umbrella insurance. Casual ones get caught unprepared.

🏢 2. Proper Entity Structuring

You wouldn’t go swimming with sharks wearing a meat suit, would you?

Yet I see investors buy properties in their own name every year.

Proper entity structuring (LLCs, holding companies, land trusts, etc.) separates you personally from your business liabilities.

It protects your personal assets and makes you look like a pro to lenders, partners, and buyers.

👉 A well-structured entity is invisible when everything goes right… and invaluable when something goes wrong.

💡 The Takeaway:

If you want to play at the “smart money table,” don’t skip the basics that protect your business, your assets, and your future.

Get your umbrella insurance.

Get your entity structure right.

Then go build your real estate empire with confidence.

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