Asset protection for real estate

How to assemble a “judgment proof” asset protection strategy – A comprehensive guide

Note: Today I have the honor of welcoming Scott Smith as an expert guest contributor to Investing Architect. Scott is an Attorney that specializes in asset protection strategies for long-term real estate investors. He is a real estate investor himself and uses the same strategies he will share with us to protect himself and his portfolio. What I admire most about Scott’s writing is that it is all substance and no fluff. Enjoy!

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*** This information is not legal advice and I am not your attorney***

A proper asset protection strategy protects your net worth even if you are sued. Below, I will share with you the secrets that will have you sleeping easy at night and going about your business as usual even when you’re being threatened by a lawsuit. You won’t have to worry about what will have your friends aging overnight. After implementing a proper strategy, lawsuits will never even get filed and the problem is gone before it begins.

Asset Protection for real estate investors is premised on two parts:

  1. Isolating the assets for liability purposes inside of a Holding Company and
  2. Hiding the assets from being connected to you or the Holding Company

Additionally, this company structure is scalable at no additional costs or fees, streamlines your taxes, can be used in conjunction with traditional financing, and allows for the traditional recording keeping you are already using.

After it is set up, you won’t even notice it’s there in your normal course of business.

Which type of company should I use to hold my investment real estate?

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