Al Aiello-LLC Master Machine??

Guru, Book, & Course Reviews
13yFollow

Al Aiello-LLC Master Machine??

Brady Hanna
Investor · Shawnee Mission, KS · Member since 2013 · 82 posts · 12 votes

Has anyone bought this "LLC Master Machine" course from Al Aiello? The cost is $695. I listened to a podcast on this and it sounds interesting, but I hate to blow $700 if it isn't worth it. My wife and I are at the starting phase of forming our LLC right now. If any of this would truly be a benefit for establishing our company, I am not against dropping the money for it, but if it gives you the same protection that just a CPA setting up your LLC will provide, I can save some $.

Here are their claims:

• Give you ironclad protection of your personal valuables

• Give you the ability to save substantial amounts of taxes

every year

• Give you the power to defend yourself against IRS attacks

• Prevent legal disputes and save you $1,000’s in legal fees

• Enable you to successfully operate your real estate business

The Real Estate Operating Agreement Extraordinaire

The operating agreement (OA) is the nuclear LLC document. It is the "heart & soul" of the LLC. The OA extraordinaire is the most powerful OA ever. Adaptable in all 50 states, it is specifically designed for your real estate so that your LLC will give you optimum legal protection and maximum tax savings

Operating Agreement Extraordinaire (121 page Blank format w/ table of contents to review) which blows everyone's mind! (Blank format with instructions for completion).

PREVENT PIECING OF THE LLC VEIL WITH MINUTES OF MEETINGS AND RESOLUTIONS – One of the most vital of entity formalities to prevent piercing of the veil, all specially targeted for real estate operations; filled-in and ready to go. You can use these without physical in-person meetings.

FREE IRS Set-Up: Step-by-step instructions to easily, quickly and correctly complete IRS Form SS-4 for federal ID and Form 8832 for the proper LLC tax classification to audit-proof your tax returns and more. Includes blank and sample filled-in formats

1Reply
132 views

Most Popular Reply

Pat Marco
Real Estate Attorney · Manhattan, NY · Member since 2014 · 129 posts · 106 votes
12y

I agree with Jerry W but please understand that you do not ever structure asset protection with "fake loans". What I wrote above is after you get insurance You set up a separate WY LLC (Wy is best for this) and capitalize it by owing money to it (it is all in the proper drafting of the Operating Agreement)

The money you owe to it is then drafted as promissory notes and liens get recorded against each of your assets stripping any and all equity .

I have used this technique for years and have known very few attorneys that are actually familiar with how to properly set up these structures. Usually it is set up for the wealthy. (Trump does not use anonymous C corps - he has TRUMP in big letters on his buildings because my understanding is his attorneys use this very same technique)

So the liens that strip the equity in your properties are not fake loans, they are created to truly capitalize a legal entity, hence the "economic reason" that holds up in court.

Look it up on line and you will see there has not been one federal case challenging such an arrangement provided your liens were recorded "prior to" any lawsuit being initiated or filed against you.

This structure saved an acquaintance of mine millions in a lawsuit on an apartment building in Chicago, where the litigants tenants wanted to slap him with punitive damages in the millions, but could not because there were no equity and if they would've won and gotten a charging order they (the plaintiffs) would've been stuck with a phantom income tax bill based on IRC 77-137

Pursuant to Revenue Ruling 77-137, the IRS requires the judgment creditor in possession of a charging order to pay tax even though income was never distributed!

There you have it... The Ultimate Asset Protection for the least amount of money because all you have to pay for on a yearly basis to protect all your assets is the renewal fees for you WY LLC with the resident agent and that costs a few hundreds a year (which is less than I pay in yearly insurance on one of my smallest properties) therefore seminar gurus can't afford to sell this best structure and instead resolve to separating assets in multiple LLCs, anonymous C Corporations and complicated trust accounts etc

6Reply
See this reply in the discussion

31 Replies

Jump to latestLatest
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    10y

    @Kevin Griffin,

    We have provided a venue for people to discuss real estate investing. Our members have vast knowledge and generally provide good information, but when you do come across incorrect advice, it is corrected, many times over, by other members. It is simply not possible for us to police every post made. But our members do a great job of correcting the errors.

    [email protected]Podcast Guest on Show #261
    BiggerPockets
    0Reply
  • Kevin Griffin
    Vero Beach, FL · Member since 2016 · 53 posts · 32 votes
    10y

    Steven,


      All excellent piece of information to know.  But I think that I'd prefer to be set up correctly in the first place, instead of hoping and then after challenging the IRS in court and losing, finding out the consequences of not doing it right in the first place.

    2Reply
  • Anya Zola
    Erie, PA · Member since 2014 · 1 post · 2 votes
    10y

    There's a lot of minutiae involved in setting up a corporation.  Each "type" has its strengths and weaknesses.  If you (or your lawyer) don't know what they are, you could pay in spades for having the wrong kind of setup.  I guess it boils down to one question, how much are you willing to pay up front to have the right kind of setup?  Do you want to wait for a lawsuit to find out?  The risk any real estate owner is subject to is "liability".

    You have lawyers out there that don't have a clear understanding of the coverage v. vulnerability of these corporate setups.  And many don't comprehend the tax burdens involved.  You have CPA's that may understand the tax issues but not the legal vulnerabilities.  Aiello's program is designed to address both issues.

    Aiello was a successful real estate investor (25 years) as well as real estate agent/broker.  He got so fed up with all the taxes he was paying the government year after year, he decided to become a CPA.  He went on to become a teacher, presenter and tax client rep before the IRS.  I heard him give a presentation a few years ago in which he explained he went before the IRS to represent a client of his who was being audited and assessed thousands in back taxes.  Not only did he come out of that meeting completely exonerating his clients of any tax liability BUT he got them a refund.  

    Does your corporate setup protect your privacy, minimize tax liability, legal liability? Does it implement equity stripping (especially useful to deter frivolous lawsuits)? Is your LLC set up in the state where your property is? If not, you could be subject to a more costly, time-consuming process to settle any legal disputes. There is a lot of minutiae that even the professionals may not be well-versed in....

    2Reply
  • Thomas Shenko
    Las Vegas, NV-Nevada · Member since 2009 · 3 posts · 2 votes
    10y

    I have had LLC's in NV and FL, the fees for both states are high and you have to pay annually for the LLC and you have to pay a fee to dissolve and LLC. I have checked into the state of AZ and they only charge 50.00 to form an LLC and there are no yearly fees and no fee to dissolve the LLC. If you form an LLC you would need member of the LLC act as a statutory agent who sign legal paper work or you can have a statutory agent setup for you for as low as 49.00 a year and he handles and paperwork.

    A statutory agent is a person or entity that is authorized by an LLC or other business entity to receive service of process. Further, for LLC's, Arizona requires that every LLC maintain an authorized statutory agent located within Arizona to receive service of process for the LLC. (i.e. lawsuits, legal notice). He then just passes them on to you if anything should come up.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free