595: How to “Layer” Legal Protection So Lawsuits Won’t Touch Your Wealth w/Brian T. Bradley, Esq.
Most investors assume LLCs for rental properties are the way to go in terms of asset protection. From a novice’s point of view, LLCs seem to provide everything you would need?—anonymity, simple tax filing statuses, and legal protection. But, an LLC in reality isn’t as airtight as most real estate investors think. And the worst time to learn about the limitations of an LLC is during a lawsuit, where your wealth (and sanity) is at risk.
To stop you from guessing when it comes to asset protection, we’ve brought on our go-to expert and heavy hitter asset protection lawyer, Brian T. Bradley, Esq. Not only is Brian well versed in the realm of asset protection, but he’s also helped numerous clients protect their real estate wealth, making him the perfect person to ask about LLCs, limited partnerships, trusts, and more.
Brian walks through the different types of legal “layering” that real estate investors can set up to protect themselves from lawsuits and angry creditors. He defines exactly how each type of real estate investor should set up their assets as their net worth expands, and what to do BEFORE you get served with a lawsuit. While Brian may not know your personal situation, he does speak with years of experience serving high-net-worth investor clients and can relay their mistakes (so you don’t make them too).
In This Episode We Cover:
What is asset protection and why is it crucial for real estate investors in particular
The “layers” of legal protection that real estate investors must have
What an LLC really protects you from and why it may be different than what you think
“Piercing the veil” and why most investors need to go a step beyond LLCs
Limited partnerships and trusts that give you the best asset protection
Financing hiccups when keeping your rental properties in trusts
And So Much More!
Links from the Show
Rookie Podcast 106: Asset Protection for Rookies: 7 Wealth-Saving Answers from an Expert
Connect with Brian:
Email Brian: brian@btblegal.com
Check the full show notes here: https://biggerpockets.com/blog/real-estate-595
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