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Real Estate Asset Protection Strategies

Need Help Getting Started?

Do you need to form your first entity for holding your rental properties….and want to make sure you form it in the right state, have the right documentation, optimize your tax benefits, and maintain it with the right compliance requirements? –OR– Do you need a more advanced strategy with multiple entities, trusts, and complex estate planning?

Real Estate Asset Protection 101

Webinar: Real Estate Asset Protection 101

Aaron Young, CEO Laughlin Associates

What You' Will Learn:

Learn the best way to protect your real estate investments from frivolous lawsuits -AND- optimize your tax savings and estate planning at the same time.

  • Asset Protection for Investors in 2024

    Learn how to get air-tight asset protection without over-paying.

  • Limited Liability Companies (LLC's)

    Learn how to properly form and maintain an entity for holding rental properties.

  • Tax Saving Strategies

    Learn how LLC's can reduce taxable income and how to utilize your entity for tax savings and estate planning.

Watch the Webinar On-Demand:

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    Get Started With an Expert

    We have partnered up with a great business to help our real estate investors protect their assets and grow their wealth with Laughlin Associates. Laughlin has provided business and asset protection services to over 10,000 entrepreneurs since 1972.

    • Entity Formation
    • Lawsuit Protection Planning
    • Tax Savings
    • Corporate Compliance Services
    • Estate Planning

    Laughlin Associates CEO and Chairman Aaron Young is an entrepreneur with several multi-million dollar businesses under his belt, and has made it his life’s work to arm business owners and real estate investors with effective asset protection strategies to protect their dreams. Aaron’s one of the best in his business and has been featured in Entrepreneur, Inc., Forbes, ABC, NBC, CBS. He has offered Maverick Investor Group clients a free phone consultation to answer your questions, understand your needs and goals, and help you customize an asset protection solution that is right for your personally.

    Aaron Young, CEO Laughlin Associates

    What Are the Most Effective Ways to Protect Your Investment Properties?

    Get Insurance

    Hazard and Liability Insurance are a must. It is now also possible to insure against Tenant Default, Eviction and Malicious Tenant Damage.

    Encumber your Properties

    This is another line of defense. If you own a property free and clear, it becomes an appealing target for someone looking to file a lawsuit. On the other hand, if a bank has a first position lien on the property for 80% of its value (because of the mortgage they gave you), it is a much less appealing target.

    Hold Your Properties in a Separate Legal Entity

    In addition to the two strategies above, using an entity to establish a "corporate veil" between you and the entity that holds your property is also very important for two reasons:

    1. To make it difficult for someone suing you personally to get access to your property.

    2. To make it difficult for someone suing your property-owner (the entity) to get access to your other (personal) assets that are outside of the entity.

    Why is an LLC (usually) the best legal entity for holding rental property?

    A Limited Liability Company, or LLC, is a hybrid of a partnership and a corporation. It’s better than a Partnership, because your managers can be protected from personal liability. As long as you act in good faith and in the best interests of the LLC, and don’t personally guarantee debts of the business or otherwise involve yourself personally, it is usually the most effective entity to protect you from liability when buying and holding rental property.

    Why is an LLC is (usually) the Most Tax-Advantaged Entity for Buying and Holding Rental Properties?

    LLCs can do many unique things, but one stands out. They can make their own tax election. That means you can take any kind of LLC – manager managed, member managed, formed in Georgia, formed in Delaware, etc., and tell the IRS and state tax people that you want to tax it as either a sole proprietorship, a partnership, an S Corporation or a C Corporation. No other structure can do this.

    If you are buying and holding rental property, you can stick with the optimal election for your passive income (sole proprietorship for 1-owner companies, partnership for 2+ owner companies), which would be completely different from the (S or C Corporation) election that flippers and developers would choose for their ‘active’ income.*

    Why is a "Manager-Managed" LLC is (usually) the Optimal Set Up?

    You get to elect how you want to set up the LLC, and whether you want it to be a “member-managed” or a “manager-managed” entity. Manager-managed LLCs are usually optimal because they have a traditional 2-layer structure, where you have owners (called “members”), who are more passive, and ‘managers”, who are the ones actively working the business and making decisions. Managers can be members, but Members aren’t automatically managers. This structure gives you, as the owner, the most flexibility and contro

    IMPORTANT NOTE: For some people, including certain foreign nationals such as Canadians, LLCs are not the most advantageous entity for holding U.S. rental properties (and there can actually adverse tax and other consequences for using them). ALWAYS consult a qualified tax and asset protection specialist about your individual situation and applicable law.

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