Investor · MA · Member since 2022 · 25 posts · 15 votes
Hello Everyone,
Thank you for taking the time to read my post. I'm currently navigating the complex process of finding a reputable asset protection attorney with expertise in real estate. My journey has introduced me to the strategies promoted by Anderson Business Advisers. While I'm open to investing in quality service, the feedback I've encountered suggests that Anderson may not deliver on its promises. It appears to be that their focus might lean more towards collecting money rather than providing substantial support and outcomes. I'm particularly interested in establishing a holding company that is a Multi-Member LLC with charging order protection so looking to place it in Delaware. Although I would like to try to do it myself, crafting effective operating agreements is outside my comfort zone. I have talked to 6 different attorneys from a variety of firms (including Anderson), my priority remains to use a firm that is committed to delivering real value and doing the strategies I'm looking for, correctly. Any advice or recommendations would be warmly welcomed.
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
2y
@Max Bellino if you feel the need to interview six separate attorneys for this scope you are over complicating your true needs. I frequently come across investors who approach asset protection the way you appear to be approaching the subject and you’re making this unnecessarily complicated. I can’t keep track of the number of people I come across on bigger pockets who feel the need to create entity structures more complexed than my former employer that owned a hotel portfolio valued over a billion dollars.
Truth be told, what you need is in fact very simple and where most make mistakes is actually in their day to day operations. If more investors spend a fraction of the time and energy spent worrying about asset protection and do the things on a daily basis that prevents liability exposure, plaintiffs attorneys won’t eat as well.
To be clear, I believe real estate should be owned by an entity but there are other things that are far more critical to protecting yourself personally as well as your real estate assets such as appropriate levels of insurance, well drafted vendor agreements & collecting insurance certificates coupled with understanding how to correctly operate the entity in which you form. This should be your priority, not interviewing 6 law firms for what amounts to a very simple legal engagement.
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
2y
@Max Bellino if you feel the need to interview six separate attorneys for this scope you are over complicating your true needs. I frequently come across investors who approach asset protection the way you appear to be approaching the subject and you’re making this unnecessarily complicated. I can’t keep track of the number of people I come across on bigger pockets who feel the need to create entity structures more complexed than my former employer that owned a hotel portfolio valued over a billion dollars.
Truth be told, what you need is in fact very simple and where most make mistakes is actually in their day to day operations. If more investors spend a fraction of the time and energy spent worrying about asset protection and do the things on a daily basis that prevents liability exposure, plaintiffs attorneys won’t eat as well.
To be clear, I believe real estate should be owned by an entity but there are other things that are far more critical to protecting yourself personally as well as your real estate assets such as appropriate levels of insurance, well drafted vendor agreements & collecting insurance certificates coupled with understanding how to correctly operate the entity in which you form. This should be your priority, not interviewing 6 law firms for what amounts to a very simple legal engagement.
Do you know the reason to have a charging company in Delaware and a holding company that holds other LLC's?
How I understand it is: charging order protection shields LLC assets from being seized to settle personal debts or judgments against its members. Creditors can't force the sale of assets within the LLC, preserving their integrity and protecting the business/real estate. Also, offers great lending oppurtites on your equity in your portfolio of assets.(I know you can do a holding company elsewhere but it seems as if mezzanine lenders like Delaware.)
@Max Bellino if you feel the need to interview six separate attorneys for this scope you are over complicating your true needs. I frequently come across investors who approach asset protection the way you appear to be approaching the subject and you’re making this unnecessarily complicated. I can’t keep track of the number of people I come across on bigger pockets who feel the need to create entity structures more complexed than my former employer that owned a hotel portfolio valued over a billion dollars.
Truth be told, what you need is in fact very simple and where most make mistakes is actually in their day to day operations. If more investors spend a fraction of the time and energy spent worrying about asset protection and do the things on a daily basis that prevents liability exposure, plaintiffs attorneys won’t eat as well.
To be clear, I believe real estate should be owned by an entity but there are other things that are far more critical to protecting yourself personally as well as your real estate assets such as appropriate levels of insurance, well drafted vendor agreements & collecting insurance certificates coupled with understanding how to correctly operate the entity in which you form. This should be your priority, not interviewing 6 law firms for what amounts to a very simple legal engagement.
Understood. What would you recommend as a structure? Because when considering the complexity of transferring funds between LLCs and the desire to streamline real estate operations, establishing a holding company maybe in my primary state of our holdings seems right? As I see it, consolidating all of our assets under a single holding company offers numerous benefits, including tax advantages, better lending oppurtites, and possibly more liability protection.
I may be overcomplicating things by considering Delaware, but a holding company still seems beneficial, even without charging order protection. Would opting for a non-charging order protection state LLC be simpler?
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
2y
@Max Bellino The take away from my first post was to trust the legal professionals who will prioritize what’s important and put you on the right path. Your follow up message coupled with the fact you already reached out to 6 law firm tells me you are not only over complicating this process but also looking to collect free legal advice. You will get much further in this business trusting and paying professionals. That’s how you build meaningful relationships who will add real value. This doesn’t merely apply to real estate this applies to any business endeavor you pursue.
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
@Max Bellino
Holding company is really not needed unless you run multiple operational businesses like a property management firm, construction firm etc that you want to roll up into one entity
Having a holding company that holds one company you that owns real estate would have me question what’s the use case?
What are the concerns? What are you trying to prevent ?
Holding company is really not needed unless you run multiple operational businesses like a property management firm, construction firm etc that you want to roll up into one entity
Having a holding company that holds one company you that owns real estate would have me question what’s the use case?
What are the concerns? What are you trying to prevent ?
I believe that having multiple properties can enhance the performance of each property I own. For instance, if three of my properties are generating significant cash flow and performing well, they can offset any issues that may arise with another property, such as a heating system failure. By centralizing funds through a holding company and allocating them strategically within my portfolio, I can optimize its overall performance.
Moreover, leveraging the tax advantages of this arrangement can significantly simplify matters and yield greater benefits. Additionally, the lending opportunities that arise from banks assessing the equity of the entire portfolio as a cohesive entity are substantial. This holistic approach to portfolio management can yield massive advantages in terms of efficiency and financial leverage.
Furthermore, the liability shield provided by this structure could prove extremely advantageous.
Thank you for taking the time to read my post. I'm currently navigating the complex process of finding a reputable asset protection attorney with expertise in real estate. My journey has introduced me to the strategies promoted by Anderson Business Advisers. While I'm open to investing in quality service, the feedback I've encountered suggests that Anderson may not deliver on its promises. It appears to be that their focus might lean more towards collecting money rather than providing substantial support and outcomes. I'm particularly interested in establishing a holding company that is a Multi-Member LLC with charging order protection so looking to place it in Delaware. Although I would like to try to do it myself, crafting effective operating agreements is outside my comfort zone. I have talked to 6 different attorneys from a variety of firms (including Anderson), my priority remains to use a firm that is committed to delivering real value and doing the strategies I'm looking for, correctly. Any advice or recommendations would be warmly welcomed.
Thank you!
~Max Bellino
How many properties do you currently own?
10, but the emphasis lies in distributing the liability of the equity across the LLC's. I've come to realize that opting for a Delaware LLC might be unnecessary at this stage; it seems more fitting for the future when my portfolio experiences significant growth.
@Max Bellino The take away from my first post was to trust the legal professionals who will prioritize what’s important and put you on the right path. Your follow up message coupled with the fact you already reached out to 6 law firm tells me you are not only over complicating this process but also looking to collect free legal advice. You will get much further in this business trusting and paying professionals. That’s how you build meaningful relationships who will add real value. This doesn’t merely apply to real estate this applies to any business endeavor you pursue.
For me, making the best decision is crucial. Collecting free but potentially inaccurate advice when I can only somewhat afford to pay hourly rates for an attorneys, some of whom may not even possess adequate knowledge, seems impractical. It's surprising to uncover the shortcomings of certain firms that lack genuine expertise. Perhaps I could be mistaken, but I believe diving into a relationship without fully comprehending it myself could result in unnecessary expenses if the relationship turns out to be wrong. Therefore, while I acknowledge the necessity of investing in a relationship, I want to gather as much information as possible and make the most informed decision possible.
Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
2y
Whatever entity formation service/person you choose to handle your asset protection, before you commit to it, be sure that you have run the entity formation matrix past your taxperson and received a quote for the yearly cost of accounting and tax prep for each shell.
There may also be costs associated with setting up the accounting for the shells, and preparing inital shell formation meeting minutes, etc...
You will also need separate bank accounts, and a war chest of money to defend them if/when needed.
Ask your asset protection attorney vs salesperson for a quote on the cost to defend, and how much it will cost to move title to the shells.
Find out if moving the title creates a taxable event for you with the IRS re. Depreciation, and if it will increase your property tax.
Find out what will be your new insurance requirements, and verify your lenders are aa onboard with this transfer.
Add up your resident agent fees, and find out the yearly costs for PO boxes if needed, plus the yearly cost for corporate formalities for each shell.
The Federal Government now requires every entity to file with them yearly, the owners of the shells. Who will do that red tape, plus any local tax prep for each shell, as well as any State required forms and fees (ie. Texas Franchise Fees, Texas County Render Taxes).
@Max Bellino The take away from my first post was to trust the legal professionals who will prioritize what’s important and put you on the right path. Your follow up message coupled with the fact you already reached out to 6 law firm tells me you are not only over complicating this process but also looking to collect free legal advice. You will get much further in this business trusting and paying professionals. That’s how you build meaningful relationships who will add real value. This doesn’t merely apply to real estate this applies to any business endeavor you pursue.
For me, making the best decision is crucial. Collecting free but potentially inaccurate advice when I can only somewhat afford to pay hourly rates for an attorneys, some of whom may not even possess adequate knowledge, seems impractical. It's surprising to uncover the shortcomings of certain firms that lack genuine expertise. Perhaps I could be mistaken, but I believe diving into a relationship without fully comprehending it myself could result in unnecessary expenses if the relationship turns out to be wrong. Therefore, while I acknowledge the necessity of investing in a relationship, I want to gather as much information as possible and make the most informed decision possible.
1. “Asset protection” to be most effective AND cost efficient should be set up taking into account the individuals assets, occupation, potential liabilities, age, and family status. 2. Ideally, each property you own should be placed into a separate entity. If liability occurs from one property, it is restricted to the assets contained in that entity, i.e., the single property held in said entity. 3. Rather than 10 LLCs for 10 properties, a number of states have established Series LLCs, with each “series” a separate legal entity. Advantages are that you only need to form and pay for the initial series LLC, file one franchise tax report, file one tax return, and pay one franchise tax payment if required by the state the LLC was formed in. 4. Your ownership of certain assets is, or can be protected from creditor judgement. Most multi participant retirement plans are Federally exempt from creditor judgements; IRAs are Federally protected as a bankruptcy exemption up to $1,512,350; some states (Texas, Florida) extend this protection to the full amount held in the IRA or any other retirement account. 5. State exemptions of assets from creditor attachment depend on the state. Texas and Florida are famous for unlimited homestead exemption; Federal law requires ownership of a homestead in that state for 39 months for this protection to extend to bankruptcy. Annuities and cash value of life insurance are fully exempt in Texas and Florida as well. 6. Relying on “charging order” protection is somewhat outdated. Most courts have found for the creditor in obtaining full ownership of the debtors interest in LLCs, Corporations, and Limited Partnerships. The one place where the charging order theory may be effective is in general partnerships. However, if the assets held in the partnership are at all liquid, then the court will probably order enough assets sold to satisfy the judgement. 7. Fully insuring you properties and adding a umbrella liability policy will probably cover you 99% of the time 8. Beyond these asset protection strategies get very expensive and complicated to implement. Trusts based in Nevis, Lichtenstein corporation/trust hybrids, multi country inter connected entities, generation skipping trusts, outside trustees, “protectors”, etc add up not only to a large initial outlay, but large annual charges. Further, these “asset protection” methods are under constant creditor attack through the courts, meaning they are probably of benefit only a short period of time, UNLESS, true CONTROL of the asset is given up. And giving up control of your assets may be defeating the whole purpose.
Here is a model for asset protection that doesn’t require any “exotic” movements 1. Move to Texas or Florida 2. Put all the money you legally can into a SELF DIRECTED Roth IRA or Solo 401k. Use the retirement account to purchase and hold title to as many real estate assets as possible. 3. Own your personal residence free and clear of any debt (or with as little debt as possible). Instead have as much debt as possible on your investment properties. 4. Within the retirement account form a series LLC and have each asset in a separate series. 5. Put excess fund into a self directed variable annuity. 6. For any real property owned outside of the retirement account, annuity or personal homestead, form another series LLC and place each asset in a separate series. Obtain maximum liability insurance, and maximum loan amounts.
This all comes with a cost, not only to set up but also ongoing. However this is exactly what I did to ensure (to the extent possible) both INSIDE and OUTSIDE asset protection.
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
2y
@Max Bellino You seem eager to learn and I hope you accept this as constructive criticism. I read through your posts and it shows a true lack of understanding of asset protection and the rationale for forming any of the structures you proposed. With your current knowledge base you are not in the position to determine the "shortcomings" of any law firm or come to the conclusion they possess a " lack genuine expertise". Perhaps not the best example, but what you are doing is no different than a medical patient who walks into 6 doctors offices with a broken finger asking to be treated with radiation. Of course the doctor is going to recommend a different treatment plan given radiation is not appropriate. You are the patient who is adamant (incorrectly) that radiation is the correct treatment plan and are out there looking for the doctor who will prescribe this even though its the incorrect course of action. If they have other suggestions, they are incorrectly labeled as having "shortcomings". As I said in my earlier post, trust the professionals. Not only attorneys, but accountants, architects and other professional service providers. There's a lot of bad information available online and its not prudent to rely on most of what you read. I suspect you've fallen victim to this.
Rental Property Investor · Round Rock, TX · Member since 2016 · 1k+ posts · 971 votes
2y
@Max Bellino - it's good you are doing your due diligence before ponying up the money, but do you have assets to protect? major income and/or cash flow? Concentrate on making first the hundreds of thousands in equity (owned equity, not financed property!) and substantial cash flow worth spending thousands of dollars per year on Anderson services and asset protection structures. You are "New to Real Estate" and overcomplicating things, likely years away from dealing with these questions. Become first "seasoned to real estate" and by that time, you'll have enough experience to judge better the asset protection question.
Here are two more bits of advice: 1. stay away from ChatGPT (it might sound authoritative and knowledgeable, but you need to have enough information/experience to critically judge the validity of its "answers"). 2. Don't ask an insurance salesman if you need to buy insurance.
@Don Konipol, correct me if I'm wrong, but IRA's and 401K money are not 100% protected from, or fully for 1. divorce, 2. individual contributions made directly into the funds (vs. as deducted from your salary during your employment), 3. bankruptcy (like, if you move funds into IRA right before declaring bankruptcy) 4. IRS liens and a couple of other exceptions. Just thought might be good for all to know.
@Max Bellino You seem eager to learn and I hope you accept this as constructive criticism. I read through your posts and it shows a true lack of understanding of asset protection and the rationale for forming any of the structures you proposed. With your current knowledge base you are not in the position to determine the "shortcomings" of any law firm or come to the conclusion they possess a " lack genuine expertise". Perhaps not the best example, but what you are doing is no different than a medical patient who walks into 6 doctors offices with a broken finger asking to be treated with radiation. Of course the doctor is going to recommend a different treatment plan given radiation is not appropriate. You are the patient who is adamant (incorrectly) that radiation is the correct treatment plan and are out there looking for the doctor who will prescribe this even though its the incorrect course of action. If they have other suggestions, they are incorrectly labeled as having "shortcomings". As I said in my earlier post, trust the professionals. Not only attorneys, but accountants, architects and other professional service providers. There's a lot of bad information available online and its not prudent to rely on most of what you read. I suspect you've fallen victim to this.
@Max Bellino You seem eager to learn and I hope you accept this as constructive criticism. I read through your posts and it shows a true lack of understanding of asset protection and the rationale for forming any of the structures you proposed. With your current knowledge base you are not in the position to determine the "shortcomings" of any law firm or come to the conclusion they possess a " lack genuine expertise". Perhaps not the best example, but what you are doing is no different than a medical patient who walks into 6 doctors offices with a broken finger asking to be treated with radiation. Of course the doctor is going to recommend a different treatment plan given radiation is not appropriate. You are the patient who is adamant (incorrectly) that radiation is the correct treatment plan and are out there looking for the doctor who will prescribe this even though its the incorrect course of action. If they have other suggestions, they are incorrectly labeled as having "shortcomings". As I said in my earlier post, trust the professionals. Not only attorneys, but accountants, architects and other professional service providers. There's a lot of bad information available online and its not prudent to rely on most of what you read. I suspect you've fallen victim to this.
Yes, I agree with you. I've encountered misinformation from a couple of firms which is why I called it "shortcomings". When I talked about something I learned from one firm, another firm said that it was completely wrong, so this is why I'm trying to gather as much information as possible before making a decision. It's concerning to receive different answers from different firms because it's hard to know which one is right. As a client, I need to trust a service that I don't have much knowledge about.
@Max Bellino You seem eager to learn and I hope you accept this as constructive criticism. I read through your posts and it shows a true lack of understanding of asset protection and the rationale for forming any of the structures you proposed. With your current knowledge base you are not in the position to determine the "shortcomings" of any law firm or come to the conclusion they possess a " lack genuine expertise". Perhaps not the best example, but what you are doing is no different than a medical patient who walks into 6 doctors offices with a broken finger asking to be treated with radiation. Of course the doctor is going to recommend a different treatment plan given radiation is not appropriate. You are the patient who is adamant (incorrectly) that radiation is the correct treatment plan and are out there looking for the doctor who will prescribe this even though its the incorrect course of action. If they have other suggestions, they are incorrectly labeled as having "shortcomings". As I said in my earlier post, trust the professionals. Not only attorneys, but accountants, architects and other professional service providers. There's a lot of bad information available online and its not prudent to rely on most of what you read. I suspect you've fallen victim to this.
Lol post of the day!
Could you please provide details on what knowledge I lack in asset protection and point out the specific areas where I may be mistaken? Thank you.
@Max Bellino You seem eager to learn and I hope you accept this as constructive criticism. I read through your posts and it shows a true lack of understanding of asset protection and the rationale for forming any of the structures you proposed. With your current knowledge base you are not in the position to determine the "shortcomings" of any law firm or come to the conclusion they possess a " lack genuine expertise". Perhaps not the best example, but what you are doing is no different than a medical patient who walks into 6 doctors offices with a broken finger asking to be treated with radiation. Of course the doctor is going to recommend a different treatment plan given radiation is not appropriate. You are the patient who is adamant (incorrectly) that radiation is the correct treatment plan and are out there looking for the doctor who will prescribe this even though its the incorrect course of action. If they have other suggestions, they are incorrectly labeled as having "shortcomings". As I said in my earlier post, trust the professionals. Not only attorneys, but accountants, architects and other professional service providers. There's a lot of bad information available online and its not prudent to rely on most of what you read. I suspect you've fallen victim to this.
Yes, I agree with you. I've encountered misinformation from a couple of firms which is why I called it "shortcomings". When I talked about something I learned from one firm, another firm said that it was completely wrong, so this is why I'm trying to gather as much information as possible before making a decision. It's concerning to receive different answers from different firms because it's hard to know which one is right. As a client, I need to trust a service that I don't have much knowledge about.
Wow, I give up on this thread.....you completely missed the point of Stuart's post. You really should re-read what he wrote. He is not talking about the law firms you interviewed!
@Max Bellino - it's good you are doing your due diligence before ponying up the money, but do you have assets to protect? major income and/or cash flow? Concentrate on making first the hundreds of thousands in equity (owned equity, not financed property!) and substantial cash flow worth spending thousands of dollars per year on Anderson services and asset protection structures. You are "New to Real Estate" and overcomplicating things, likely years away from dealing with these questions. Become first "seasoned to real estate" and by that time, you'll have enough experience to judge better the asset protection question.
Here are two more bits of advice: 1. stay away from ChatGPT (it might sound authoritative and knowledgeable, but you need to have enough information/experience to critically judge the validity of its "answers"). 2. Don't ask an insurance salesman if you need to buy insurance.
@Don Konipol, correct me if I'm wrong, but IRA's and 401K money are not 100% protected from, or fully for 1. divorce, 2. individual contributions made directly into the funds (vs. as deducted from your salary during your employment), 3. bankruptcy (like, if you move funds into IRA right before declaring bankruptcy) 4. IRS liens and a couple of other exceptions. Just thought might be good for all to know.
Any contributions made in compliance with Federal regs receive the same treatment as to protection. Fraudulent transfers are never protected. You are otherwise correct
@Max Bellino You seem eager to learn and I hope you accept this as constructive criticism. I read through your posts and it shows a true lack of understanding of asset protection and the rationale for forming any of the structures you proposed. With your current knowledge base you are not in the position to determine the "shortcomings" of any law firm or come to the conclusion they possess a " lack genuine expertise". Perhaps not the best example, but what you are doing is no different than a medical patient who walks into 6 doctors offices with a broken finger asking to be treated with radiation. Of course the doctor is going to recommend a different treatment plan given radiation is not appropriate. You are the patient who is adamant (incorrectly) that radiation is the correct treatment plan and are out there looking for the doctor who will prescribe this even though its the incorrect course of action. If they have other suggestions, they are incorrectly labeled as having "shortcomings". As I said in my earlier post, trust the professionals. Not only attorneys, but accountants, architects and other professional service providers. There's a lot of bad information available online and its not prudent to rely on most of what you read. I suspect you've fallen victim to this.
Yes, I agree with you. I've encountered misinformation from a couple of firms which is why I called it "shortcomings". When I talked about something I learned from one firm, another firm said that it was completely wrong, so this is why I'm trying to gather as much information as possible before making a decision. It's concerning to receive different answers from different firms because it's hard to know which one is right. As a client, I need to trust a service that I don't have much knowledge about.
Wow, I give up on this thread.....you completely missed the point of Stuart's post. You really should re-read what he wrote. He is not talking about the law firms you interviewed!
I get what Stuart is saying. If I ask different lawyers, I'll get different answers. But my problem is, sometimes when I tell them what other lawyers said, they tell me it's wrong (meaning on the legal side..nothing to do with stucture). That's why I'm trying to figure out who's right and who's wrong. I also understand now that making a holding company LLC in Delaware, like he said, is making things too complicated. Thanks for your input.
@Max Bellino You seem eager to learn and I hope you accept this as constructive criticism. I read through your posts and it shows a true lack of understanding of asset protection and the rationale for forming any of the structures you proposed. With your current knowledge base you are not in the position to determine the "shortcomings" of any law firm or come to the conclusion they possess a " lack genuine expertise". Perhaps not the best example, but what you are doing is no different than a medical patient who walks into 6 doctors offices with a broken finger asking to be treated with radiation. Of course the doctor is going to recommend a different treatment plan given radiation is not appropriate. You are the patient who is adamant (incorrectly) that radiation is the correct treatment plan and are out there looking for the doctor who will prescribe this even though its the incorrect course of action. If they have other suggestions, they are incorrectly labeled as having "shortcomings". As I said in my earlier post, trust the professionals. Not only attorneys, but accountants, architects and other professional service providers. There's a lot of bad information available online and its not prudent to rely on most of what you read. I suspect you've fallen victim to this.
Yes, I agree with you. I've encountered misinformation from a couple of firms which is why I called it "shortcomings". When I talked about something I learned from one firm, another firm said that it was completely wrong, so this is why I'm trying to gather as much information as possible before making a decision. It's concerning to receive different answers from different firms because it's hard to know which one is right. As a client, I need to trust a service that I don't have much knowledge about.
Wow, I give up on this thread.....you completely missed the point of Stuart's post. You really should re-read what he wrote. He is not talking about the law firms you interviewed!
Instead of suggesting that people give up, why not offer them help next time?
I understand your perspective. Each time you consult a lawyer, you receive a different answer, and the subsequent lawyer may provide a completely different solution or, even worse, refute what the previous lawyers have said.
One of the primary issues is their inherent biases. They have motivations to provide answers that:
1. Generate the most revenue for them. 2. Are based on their capabilities rather than what is ideally offered to you (for example, if a lawyer is only licensed in Texas, they might recommend structuring in Texas even when it's more advantageous to establish, say, a Wyoming holding company, simply because they cannot facilitate the latter).
Comparing this to the medical field, as discussed in this thread, physicians generally provide more consistent advice. When seeking multiple opinions for a medical issue, it's likely that all consulted physicians will recommend a cast for a fracture followed by rehabilitation. In contrast, legal advice tends to vary significantly; as you and I have both experienced, consulting different lawyers often results in disparate advice, unlike the consistency typically observed in medical consultations.
Furthermore, the consistency in medical advice on fracture treatment is evident across various states, countries, and online resources, contrasting starkly with the highly variable nature of legal advice, which is influenced by diverse legal systems and jurisdictions. This inconsistency in law highlights its complexity compared to the more uniform medical field.
@Costin I. I have followed some of your great advice you have shared on other threads as well as some chart on what to follow and read. thanks a 1000000 times. Do you think it might help @Max Bellino here?
@Stuart Udis Do you think you could help @Max Bellinowith a very high level (helicopter view) of what you think should be good to start with? like land trust, LLC, and high level of what is recommended in RE? What would you recommend to someone who just start? I also don t think
@Max Bellino is looking for free legal advice. I just think that it is very confusing to go see different laywer and hear them telling you that what the previous laywer says make no sense. Maybe a very high level of what is recommended would be super helpful. After all isn't that why this Forum exist? to help and mentor others? PS: thanks to all this thirds has been very interesting!
Rental Property Investor · Round Rock, TX · Member since 2016 · 1k+ posts · 971 votes
2y
@Anthony Dupre - I completely agree with you. I often say the "specialists" will give you the answer/path with the least risk/effort and highest revenue for them, and not necessarily for you. Even from the good ones, the quality of their answer is dependent on the quality of your question (so educate yourself to ask the right questions in the right form...which is what I think @Max Bellino is trying to do here).
I don't know if Max can benefit from my notes and diagrams, or if they apply to his situation and plans, but since you mentioned them, here they are - just be advised this is from a lot of sleeping at Holiday Inn Express many years ago so take them with a big grain of salt and don't construe them as legal or tax advice:
If you are new to REI you should be primarily concerned with finding good deals and growing your business first. I would not suggest looking into establishing LLCs and asset protection strategies till you have at least $100-300K in equity (!) and only after you covered properly the "other" aspects of risk management (insurance, umbrella insurance, proper property management, etc.).
Unless you are doing flipping (or AirBnb), in which case I suggest you look into Series-LLC and you operate each flip in its own child-series (if not clear why, ask for more details).
Anyway, a lot of this is covered in my notes, and that should save you hours of research and hopefully clear some confusion as to why you want it and when and how. I spent numerous hours researching from multiple sources the whole LLC question and asset protection matter and all the rabbit holes it opens. I gathered all my notes in a 50+ pages document touching on the formation and maintenance of LLC and business structures, transferring assets, protection strategies, trusts, anonymity, insurance, levels of protection, etc. including when you should do it, how many properties per LLC, due on sale clause, selecting an attorney, fees, checklists and resource materials.
