All Forum Posts by: Brian Matlock

That makes sense and fits with what my intuition suggested. I'll do some reading on equity stripping strategies and see if its worth the trouble. In the meantime, I'll make sure my insurance is good! Thanks for the feedback.

Thanks for that recommendation.

Read the article. Good tip. I think that suggests I need to show reasonable equity in the owner. I suspect a 20% equity position would be plenty, since 3rd party lenders have historically lent to an investor with 20% down.

I'm wondering about an asset protection strategy that just occurred to me, but that seems a little too easy. What am I missing? I'm about to purchase a model home and lease it back to the builder (I'm a seasoned real estate investor and own lots of rental properties). I'll be buying it for cash, but suddenly thought it might make sense to loan myself the cash from one of my LLC's or my S-Corp and then take title in another LLC. The bulk of the investment would be in the first position lien held by the lending entity, and the owner's equity position would be small. If something bad happened, and the owner was found liable, wouldn't the exposure be limited to the owner's equity and other assets of that owner? And wouldn't the lender's position be safe(r) from a claim? If I borrowed the money from a 3rd party but loaned myself the down payment from a corporation I control which then held a 2nd position lien, it seems I would effectively be shielding my equity behind a corporation that loaned me the money, one that, as a lender only, wouldn't be subject to the types of claims that an owner would. Seems straight forward, but also seems a little too cute. Am I forgetting something?