Real Estate Basics: Asset Protection for Real Estate Investors

The basics of asset protection comes down to two parts.

One is we separate the investor's assets from the operations. All of the assets are held in one company. And this particular company doesn't interact with anybody, doesn't do anything, and has no contact with the outside world. You hold your real estate assets under anonymous names, inside of anonymous trusts and anonymous structures that nobody can even find out who owns them.

The operating company is a shell company. This company owns no real estate assets but it conducts all of the business. It's your face to the world, it's the one that we want people to sue if there's ever a dispute. In fact we want to structure our contracts that says if we have a problem you have to sue only this company. That protects us from all types of liability.

Whenever you're setting up a good asset protection strategy, remember: Keep assets on one hand, complete anonymity and separation, operations on the other.