Scott Smith is the founder of Royal Legal Solutions, an asset protection attorney, and a long-time real estate investor. He believes that life gets easier the more protected you get. For this episode, Scott will talk about the importance of protecting your assets and discuss why it’s not enough to rely solely on insurance policies.
Watch the episode here:
Listen to the podcast here:
We often get too focused on scaling and achieving financial freedom but neglect the system and process that we need to do to get there. Things like asset protection and tax strategy are buckets that we need to put some energy and money into. We don’t worry about those things most of the time, but if we put a little bit of investment into those buckets, we would surely get a tremendous amount of gain.
Key Points From This Episode:
- Insurance is the cheapest way to protect your real estate investment, but it is not enough.
- It’s wise to have additional asset protection and not rely solely on insurance.
- Insurance only covers you from negligence claims.
- Insurance doesn’t cover any other type of claim for breach of contract, fraud, gross negligence, and any intentional act.
- Scott explains what a Series LLC is and why he thinks it’s the best-holding company for real estate asset protection.
- In a Series LLC, the investor gets to hold all the companies and investments anonymously, preserving privacy.
- People can’t know what you own, and it doesn’t show other people who might try to find out what you are investing in.
- Scott explains why a Series LLC in conjunction with the anonymous trust is the best asset holding company for syndication investments.
- A Series LLC is also great protection from lawsuits for passive investors.
- What’s the bare minimum security that you should have for your investments?
“People gotta know you can’t hold assets in your personal name and think that insurance is going to protect you because it’s just not enough. It’s insufficient.” [00:02:47]
“What you wanna be looking for when you’re looking at the question of ‘What type of holding company do I need?’ You’re asking yourself what’s gonna provide the best protection with the lowest ongoing cost, lowest upfront, and ongoing cost. It’s like a cost-benefit analysis that hedges against risk.” [00:08:48]
“Then, you’re growing your net worth, and you’re focused on your net worth build; you just don’t ever think about tax, or you never think about asset protection. No one worries about that side. But if you made a little bit of investment into that side of it, you would get a huge amount of gain.” [00:18:55]
Links Mentioned in Today’s Episode:
About Scott Smith
Scott Royal Smith is a real estate investor and asset protection attorney. Scott became an entrepreneur while still in law school, purchasing and running an auto mechanic shop to pay his way through school. After graduating, Scott began his law career as a high-stakes corporate litigator. He spent the last ten years of his career analyzing real estate investment and asset protection. Today, Scott is the Founder and CEO of Royal Legal Solutions. A firm he built to offer tax, business, and legal strategies to clients all over the U.S and Canada. He continues to educate the public on asset protection strategies to help circumvent debilitating lawsuits for his clients.
Love the show? Subscribe, rate, review, and share!
Join the Real Estate Syndication Show Community: