Asset Protection – Basics #1



Asset protection is always in the background of real estate investing. But it should never be far from sight!

We work hard every day to build wealth through real estate, and that can be substantial and fund our retirement. The last thing we want is to lose what we’ve worked so hard to create. That’s where asset protection comes in.

Protecting assets can be very simple to highly complicated. I get asked all the time about complex trusts and layered structuring to out-of-state LLCs. After being the asset protection business for over 20 years, my opinion hasn’t changed. Start basic and then let your protection grow as your assets grow.

There are lawyers who will “sell” you a big, expensive package of “bullet-proof” asset protection structures. When I went to my first Rich Dad, Poor Dad event, there was a lawyer on stage with a silver briefcase that had the full asset protection entities and documents. This cost $5000! And all it included were fill-in-the-blank forms to create LLCs, Family Limited Partnership, S-Corp and a few other documents. You still had to fill out the forms correctly and file them with the state and pay the fees. I had a client purchase the set of documents and was instantly disappointed in herself when she found out I could do everything for her for half the price.

I tell this story for a reason. Be careful of purchasing so called “asset protection packages” at real estate events. Rarely are they beneficial, and you’re probably overpaying for what you get. Further, you probably do not need all of that structuring up front.

Here’s the tip: It doesn’t matter what structure you create if you don’t manage that structure correctly! Starting off too complicated will probably work against you because you will fail to maintain the structure appropriately.  Start with the basics and grow from there.

In the next article in the Asset Protection Basics series, I will discuss the liabilities you face as real estate investors so you know what you’re protecting yourself from. For more information, please see my website link below! I have a ton of free asset protection content.

Jeffrey S. Breglio, Esq.
Breglio Law Office and REI Mastery U
(801) 560-2180


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