Ritter on Real Estate Protecting Your Assets and Limiting Your Liability with Brian T. Bradley
In the past, real estate investors didn’t need to worry about getting sued. Now, it’s becoming part of the cost of doing business. Asset protection has become the front-line defense against predators who abuse the legal system. In today’s episode, we dive into the subject with Brian T. Bradley, a leading and asset protection attorney for real estate investors, and high net worth families. Brain explains how the likelihood that you get sued increases the more your business grows. Having talked about the need for investors to protect their assets, we explore the different forms of asset protection that can range from deliberately carrying debt to establishing an LLC in a different state. After touching on how asset protection can get you to the negotiating table faster and in a stronger position, Brian unpacks the practical steps that investors should take to protect their assets. We discuss the pros and cons of onshore versus offshore asset protection and how Bridge Trusts offer the best of both worlds. Brian then talks about why hitting a net worth of $500,000 substantially increases your risk — it’s just enough to get sued but not enough to easily recover from it. We dispel common misconceptions around asset protection and Brian provides step-by-step information on the topic, including what happens to your money when you place it into a trust, and the average costs of asset protection. Tune in to hear more about asset protection. As Brian can attest, there’s no point earning money if you’re not able to keep it.
Key Points From This Episode:
- Exploring Brian’s acclaimed career as an educator and asset protection attorney.
- What ‘asset protection’ means from a real estate perspective.
- Why lawsuits are an increasingly large issue; never have anything in your name.
- Brian unpacks the roadmap for the different forms of asset protection.
- How judges have broad powers to reach your assets, even when lacking legal authority.
- The asset protection steps you should take when you’re an entry-level investor.
- What an asset protection trust is and how it’s different from other trusts.
- The pros and cons of offshore versus onshore asset protection strategies.
- How US courts don’t always acknowledge the precedent of the state your trust is set up in.
- The best of both worlds: setting up Bridge Trusts; a hybrid onshore, offshore model.
- Why hitting a net worth of $500,000 substantially increases your risk.
- Common misconceptions that people have regarding LLCs and asset protection.
- What happens to your money when you transfer it into a trust.
- The four layers of asset protection: LLCs, asset management companies, asset protection trusts, and insurance.
- Limits to insurance companies and how they might “wiggle out” of claims.
- Dispelling more myths around asset protection.
- Why you should always seek professional help when it comes to liability.
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