Many real estate investors own multiple pieces of real estate. Unfortunately, most of them have not taken steps to protect these assets in the event of a law suit. Most real estate investors either hold the real estate in their own names, joint tenancy with their spouse or in one business entity such as an LLC. In all of the above scenarios, a lawsuit involving one of the pieces of real estate will place all the pieces of real estate at risk.

Properly structured a real estate investor can protect his assets as follows: A lawsuit against one of the pieces of real estate will not affect the other pieces; a lawsuit against a piece of real estate will not attach to the client’s other assets; and a lawsuit against the client personally will not attach to the client’s real estate.

A properly formed asset protection structure for multiple pieces of real estate utilizes multiple entities formed in at least three (3) different states. This structure will place each piece of real estate into a separate entity so that a lawsuit against one piece of real estate cannot affect any other real estate because those pieces are owned by a different legal structures and a judgment against one structure cannot attach to another structure. The client does not own the real estate owning entity directly. His/her ownership is in an entity which owns an entity which owns the real estate holding entity. In other words, there are 3 layers of protection between our client and the ownership of the real estate. Consequently, a lawsuit against the client cannot affect the pieces of real estate because the client does not own the real estate directly. His/her ownership is an indirect ownership of the real estate. The result is the same in the event of a lawsuit against one of the pieces of real estate. Our client is personally protected because, once again, he/she does not own the property directly, and as a result, cannot be personally liable for any judgment entered against the property.

CSS Nevada has developed an asset protection structure which will accomplish the goals discussed above. This structure will not only protect each piece of real estate from all the others, but will also protect the real estate in the even the client is sued and, finally, will protect the client in the event one of the pieces of real estate is the cause of the lawsuit. The structure is designed to be as cost effective as possible and will reduce the number of tax returns to an absolute minimum. This structure has been examined by many CPAs and attorneys and all have found the structure to be an excellent asset protection structure. Contact CSS Nevada for more information on how you can protect your real estate investment.

Disclaimer: The content on this website has been prepared for informational purposes only. It is not intended to be nor do we constitute legal or tax advice. Each situation with relation to corporate and clients needs are unique and must be consulted directly on an individual (one to one) written contract basis with Corporate Support Services of Nevada, Inc. (CSS NEVADA). Content within website and videos are only examples of strategic asset protection strategies.