Ownership of real estate has many benefits from an investment and tax perspective, yet there is downside risk. The value of real estate holdings can be used to cover damages awarded in lawsuits. It is important to consider asset protection strategies relating to real estate holdings in order to minimize that risk. Asset protection planning is a preemptive measures to reduce your exposure to future lawsuit risk. Scott Smith, owner of Royal Legal Solutions, says using the right tools to mitigate your exposure risk and liability is critically important. Learn more about the right tools and properly protecting ourselves.

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Ownership of real estate has many benefits from an investment and tax perspective yet there is downside risk. However, since the value of real estate holdings can be used to cover damages awarded in lawsuits, you don't want that exposure, so it is important to consider asset protection strategies relating to real estate holdings in order to minimize that risk. Asset protection planning is a way to reduce your exposure to future lawsuit risk. It encompasses insurance and how real estate is titled to make It and other assets less valuable, less vulnerable to the claims of individuals who may be able to sue you for something in the future whether it's frivolous or not. It is about preemptive planning, so the first place to start is with the property itself.

Since real estate investors are easy to identify, easy to sue, and appear to have deep pockets, being adequately insured is an absolute necessity. The second step involves the proper structure in which to hold the real estate. For investment properties, it is highly unusual to hold them in an owner's personal name. That is the wrong thing to do. I'm not an attorney, but any attorney will tell you holding title to real estate or any asset worth anything in your personal name is a big mistake. It's putting a target on your back. Holding property in one's personal name or jointly with a spouse places those personal assets and other investment properties at risk if a lawsuit results in damages being awarded. Using the right tools to mitigate your exposure risk and liability is critically important. You need the right tools. Let's learn more about properly protecting ourselves.

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Top 10 Things Real Estate Investors Need To Know To Protect Their Assets with Scott Smith
It's my pleasure to introduce to you, Attorney Scott Smith. Scott is the owner of Royal Legal Solutions in Austin, Texas. They are one of the top asset protection companies for real estate investors in the country and they provide niche advice for over 29,000 real estate investors representing most of the US states, withholdings of over $4.5 billion. He personally holds real estate in over ten of those states. Scott, welcome to the show.

Great to be here, Marco. Thanks for having me on.

It's great having you on. I haven't done an episode on asset protection for awhile and we are long overdue because there are a lot of things we can talk about as it relates to asset protection. It's such a critically important topic and one that a lot of investors don't like to talk about because of the fact that they could potentially get sued scares them, but you can't stick your head in the sand and avoid the topic.