Among the many areas of the real estate investing business is the vital one regarding asset protection and how to safeguard against the many dangers that you may encounter. Joining us on the Passive Income Through Multifamily Podcast today is Brian Bradley, from Bradley Legal Corp., to explain the necessary steps that investors should be taking based on the size of their businesses and portfolios. We get into a helpfully detailed discussion on what Brian calls the different layers of protection, looking specifically at LLCs, limited partnerships, and asset protection trusts. He also explains the 'ECCC 'acronym, of Effectiveness, Cost, Control, and Compliance. As the senior managing partner at Bradley Legal Corp., Brian oversees the protection of over five billion dollars worth of assets, and in our conversation, we are lucky enough to tap into the kind of gained wisdom that this kind of experience provides. We also hear from him about why a hybrid version of a trust is often the best route to go for safe assets, and how he recommends his clients approach setting up these kinds of Bridge Trusts. For all this and whole lot more from Brian Bradley, make sure to join us.
Key Points From This Episode:
- Brian introduces the idea of asset protection and why it is so important.
- Important concepts and tools to understand; LLCs, limited partnerships, and asset protection trusts.
- Understanding the specific benefits of limited partnerships and their two constituent parts.
- Brian unpacks the options regarding asset protection trusts.
- The limits of an LLC and why it is not enough protection in the long term.
- Personal liability and disregarded entities, and further misconceptions about LLCs.
- Privacy and anonymity in the legal system; Brian clears up some common misunderstandings.
- The power and limitations of a Revocable Living Trust, and how it relates to the rest of your protection.
- Geographic ramifications and what we need to know about onshore and offshore trusts.
- Why Brian tends to avoid completely foreign trusts in favor of hybrid options.
- How a Bridge Trust brings together the strengths of offshore and onshore trusts.
- The costs involved in setting up Bridge Trusts and who should seriously consider this route.
- Brian shares his first-hand experience with the utility of the hybrid model.
- Further thoughts on the extent to which a limited partnership can get you started protecting your assets early on.
- Brian's stress management tactics in the office and at home.
- Why Brian wants to pursue more coaching in the near future!
Links Mentioned in Today’s Episode:
Passive Income Through Multifamily Real Estate Facebook Group
Vertical Street Ventures
