MB332: Avoid Lawsuits & Protect Your Real Estate Assets – With Garrett Sutton
Description
As real estate investors, we spend years building up generational wealth. But a single lawsuit can tear it all down.
So, how do we put the right asset protection measures in place?
Garrett Sutton is the corporate attorney and asset protection expert behind Corporate Direct, a firm that helps entrepreneurs and investors protect their assets, maintain their privacy and achieve their financial goals.
Garrett is also one of Robert Kiyosaki’s Rich Dad Advisors and the bestselling author of several books, including his new release, Veil Not Fail: Protecting Your Personal Assets from Business Attacks.
On this episode of Financial Freedom with Real Estate Investing, Garrett joins cohost Garrett Lynch and me to explain why asset protection is crucial for real estate investors at all levels.
Garrett discusses why an LLC is the best way for syndicators and apartment owners to structure a business and walks us through the most common mistakes people make when it comes to asset protection.
Listen in for Garrett’s advice on what insurance you need as a real estate investor and learn what steps you can take to protect both your personal assets and property from lawsuits.
Key Takeaways
The theme of Garrett’s new book, Veil Not Fail
- How to set up business to protect personal assets
- Rules must follow called ‘corporate formalities’
Why asset protection is crucial for real estate investors
- Vulnerable to outside attacks if in individual name
- Plaintiff can go to court for real estate assets
The best way for apartment owners to protect ourselves
- Umbrella coverage for personal insurance
- Use WY, DE or NV holding company for state LLCs
Why Garrett likes LLCs in Wyoming, Delaware and Nevada
- Offer charging order protection for LLCs
- Person suing from outside can’t force sale of assets
The common mistakes people make re: asset protection
- Forget to transfer title to LLC
- Taxes not filed properly
- No record of annual meeting minutes
- Don’t have separate bank account for LLC
Garrett’s advice around insurance for your LLC
- Transfer insurance from individual name to LLC
- Save money by listing LLC as ‘additional insured’
When you need D&O insurance coverage
- Large company with many contracts, employees
- Not necessary for small company
Who should consider getting cyber liability insurance
- Company with significant internet presence
- Collect sensitive info online, e.g.: credit cards
Garrett’s insight on the Corporate Transparency Act
- Impacts 25% owners of LLC or corporation
- Must file name, DOB and photo of ID every year
What to look for in an asset protection attorney
- Invest in real estate themselves
- Understand differences among state laws
The advantages of using an LLC for real estate
- Corporate shares lack charge order protection
- Flexibility around taxation
- Only one level of management
Connect with Garrett Sutton
Call (800) 600-1760
Connect with Michael Blank
Apartment Investor Network Facebook Group
Email podcast@themichaelblank.com
Resources
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Access Michael’s Free Resources in the Freedom Vault
Financial Freedom with Real Estate Investing by Michael Blank
Veil Not Fail: Protecting Your Personal Assets from Business Attacks by Garrett Sutton, Esq
The Corporate Transparency Act
The post MB332: Avoid Lawsuits & Protect Your Real Estate Assets – With Garrett Sutton first appeared on Apartment Building Investing with Michael Blank.
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