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asset protection firms

Jessica S.
Little Elm, TX · Member since 2015 · 15 posts · 9 votes

We are just starting out and trying to get the right entity formed before we purchase our first rental property. I have been doing a lot of research on the best strategy, and it seems that every attorney/expert seems to contradict every other attorney/expert. I have been looking at working with the following firms, and they all seem to have different opinions on Nevada/Wyoming entities, series LLC, land trusts, etc. I am just not sure who to believe at this point, since I am obviously not an attorney. Anyone have experience with any of these companies?

- Clint Coons / Anderson Advisors

- Megan Hughes / Smart Business Incorporation

- Garrett Sutton / Sutton Law Firm / Corporate Direct

- Mark Kohler / Kyler Kohler Ostermiller & Sorensen

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Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
10y

I congratulate all posters on this thread for considering the importance of protecting their other assets before investing in an asset (real estate) than can, occasionally create a large liability.  Liability awards have become so large, and insurance policy loopholes so numerous, that one can not rely totally on insurance liability coverage anymore.

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  • Ken Weiner
    Rental Property Investor · Los Angeles, CA · Member since 2015 · 30 posts · 56 votes
    10y

    I have been struggling with the same thing.  I read the Clint Coons book (Asset Protection for Real Estate Investors) and then spoke with someone at Anderson Advisors who pretty much recommended a strategy in line with what is promoted in the book (land trusts, LLCs, and Nevada holding LLC). I wanted to speak with people that have used the firm, but they wouldn't provide references due to client confidentiality. I sought out to find my own references, but wasn't able to find any (even after posting here on Bigger Pockets).

    For the time being, I'm sticking with a simpler approach of having a good Umbrella insurance policy and one LLC holding the few properties that I own.

    Would love to hear what you end up doing, @Jessica S.

    1Reply
  • Lee G.
    Developer · Boise, ID · Member since 2009 · 168 posts · 112 votes
    10y

    We've worked with KKOS. Send me a colleague request and I'll give you the skinny. 

    Also, see my post here: 

    https://www.biggerpockets.com/forums/92/topics/244732-anderson-business-advisors?page=1#p1607657

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  • Delia Lopez
    Investor · Roseburg, OR · Member since 2016 · 28 posts · 17 votes
    10y

    I have some questions as well, went to Clint Coons sight a chat popped up for a telephone consult and they have a platinum $1500 plus $35 per month sales pitch. I have spoken to many asset protection attorneys who give wrong advice and hope to find one that knows what they are talking about. Our properties were put in WY Irrevocable trusts and the trustee is an WY LLC. We also have liability ins on every property and an umbrella but most suit are aimed around insurance. You learn this after the first law suit and documenting everything and being totally honest will not prevent all lawsuits, unfortunately.

    I am looking for an attorney familiar with WY irrevocable trust and LLC set ups I can hire for an hour or two to find out if my paperwork is correct.

    1Reply
  • Prab C.
    Rental Property Investor · Chicago, IL · Member since 2015 · 48 posts · 6 votes
    10y

    @Jessica S.

    Jessica, who did you end up going with? Any recommendations? Thanks!

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  • Prab C.
    Rental Property Investor · Chicago, IL · Member since 2015 · 48 posts · 6 votes
    10y

    @Ken Weiner

    Ken, who did you decide to go with? 

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  • Jessica S.
    OP
    Little Elm, TX · Member since 2015 · 15 posts · 9 votes
    10y

    @Prab C., I am using Corporate Direct, which is owned by Garrett Sutton. I read several of his legal-related real estate books in the Rich Dad series and liked his approach.

    1Reply
  • Rich Hupper
    Broker / Investor · Tewksbury, MA · Member since 2008 · 1k+ posts · 351 votes
    10y

    this is definitely a very frustrating thing because "everyone's situation is different". However in terms of rental property i am pretty sure you want them in their own seperate llcs. That way if someone slips and falls at any particular property the lawsuit only invovles that llc and its assets.

    I believe a series llc can also do this, and allow you to have a flipping company and operating company all operating seperately but as a whole.

    1Reply
  • Prab C.
    Rental Property Investor · Chicago, IL · Member since 2015 · 48 posts · 6 votes
    10y

    @Jessica S.

    Thanks!! Has the experience been good (and relatively cost effective)? Would you recommend using him?

    Thank you!!

    0Reply
  • Jessica S.
    OP
    Little Elm, TX · Member since 2015 · 15 posts · 9 votes
    10y

    @Prab C., I would say they are pretty cost-effective (around $1000 or less per entity). It's set up so that an "Incorporation Specialist" handles your account, and I have never spoken with an attorney (although my accounting firm did speak with Garrett Sutton to get his recommendation on how to structure everything before we proceeded). There is not a lot of hand-holding/explaining. It kind of feels like basically just filing the papers and not much explanation behind anything. I personally would still use them again because I like their approach/strategy for asset protection. Every company will have pros and cons. I do wish there would be a little more explanation behind each step. But I get the feeling that the "Incorporation Specialist" is more of a frontline employee, so they're definitely not at the same level as an attorney. 

    4Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    10y

    I congratulate all posters on this thread for considering the importance of protecting their other assets before investing in an asset (real estate) than can, occasionally create a large liability.  Liability awards have become so large, and insurance policy loopholes so numerous, that one can not rely totally on insurance liability coverage anymore.

    Private Mortgage Financing Partners, LLC
    WebsiteView Page
    2Reply
  • Sid Shankar
    Rental Property Investor · Chicago, IL · Member since 2018 · 30 posts · 4 votes
    5y

    @Delia Lopez so did u end up working with anderson

    0Reply
    • Delia Lopez
      Investor · Roseburg, OR · Member since 2016 · 28 posts · 17 votes
      5y
      Originally posted by @Sid Shankar:

      @Delia Lopez so did u end up working with anderson

      No, we have everything in a LIOT (Lifetime Income Only Trust aka "medicaid trust) I figure if "Uncle Sam" has problems collecting... We have 1 LLC as trustee, as each LLC must have annual meetings, separate checkbook etc. I also have read where single member LLC's are pierced more often. It's also supposed to be a lawsuit preventer as a lawyer would do a cost benefit analysis before filing suit I am hoping they'd see only the 1 property the tenant is in and an out of state trustee and LIOT and decide costs are higher to file and less likely to collect. We'' see. I also have liability ins. Our Trust, LLC/ trustee are in WY. We have property in OR. CA and NM so none in the state with the trustee so supposed to have to file federal court. It's kinda complicated to explain. Easy to manage, can give some tax advantages. Our real estate investments have surpassed my imagination so we're looking and having our Trust Protector amend the Trust into a Platinum Complex Trust for tax reasons. AOAUSA.com has had seminars on Trusts.

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