Hello Bigger Pockets Network,
My name is Jason Cunningham, and I am a Realtor in Newport Beach, CA. I have a client who owns a handful of properties in the Orange County area. The married couple owns their properties personnaly as joint tenants, three of them which are unencumbered. They have a relatively large umbrella policy and feel this is sufficent protection from potentioal loss.
Recently, a savvy investor I know suggested a seminar where they discuss asset protection. It is called "Magnify Your Wealth Summit" in San Diego, www.growin2018.com. Was wondering if anyone has any feedback on this seminar... This investor mentioned that unencumbered properties held personally by the investor(s) is a scenario that would-be criminals specifically seek out, and that umbrella policies should not be viewed as sufficient protection.
Any of your thoughts and/or reference to any articles on this subject that I can share with my clients would be greatly appreciated! Thank you for your time! Good luck!
I been in a similar situation and looked into the whole asset protection question (I can share my notes if interested, PM me). Unencumbered properties make for a big target in the case of a lawsuit and insurance and umbrella insurance might not be sufficient. Insurance is not going to cover you in all the scenarios - asset protection strategies/structures complement regular insurance and represent insurance against litigation - so I would say you should put that in place when you have substantial equity and cash flow to protect.
Here is a diagram I created to help in this quest:
@Jason Cunningham I am attending the Magnify Your Wealth summit in San Diego next week, and one of the reasons is asset protection. What did your client decide to do?