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SHOW NOTES FOR EPISODE #011 WITH GARRETT SUTTON
In this episode Garrett Sutton, acclaimed corporate attorney, author and Rich Dad Advisor addresses the importance of asset protection for real estate investors.
What You Will Learn
- What is asset protection?
- Do you need to open an LLC for every property?
- What the magic words are for a bank that won’t let you put title in the name of the LLC
- Why Garrett doesn’t like Land Trusts
- What is the best state to open an LLC?
- What are land trusts and do they provide protection?
- What are the good, bad and ugly entities?
Garrett Sutton
Garrett Sutton, Esq. is a nationally acclaimed corporate attorney and asset protection expert, who has written a number of books guiding entrepreneurs and investors. Garrett’s best sellers include: Start Your Own Corporation, Writing Winning Business Plans, The ABC’s of Getting Out of Debt, Run Your Own Corporation, Buying & Selling a Business and Loopholes of Real Estate in Robert Kiyosaki’s Rich Dad Advisor series. Garrett is also the author of How to Use Limited Liability Companies & Limited Partnerships and the coauthor of Finance Your Own Business and most recently released, Toxic Client. Garrett enjoys helping entrepreneurs to succeed. He has over thirty years of experience in assisting individuals and businesses to determine their appropriate corporate structure, limit their liability, protect their assets and achieve their goals. Garrett is the founder of Corporate Direct and Sutton Law Center, which since 1988 has provided affordable asset protection and corporate formation and maintenance services for investors around the world. His articles and quotes have been published in The Wall Street Journal, New York Times, CBS.com, Time.com and Credit.com. Garrett is married with three children and lives in Reno, Nevada near the outdoor activities of Lake Tahoe and the Sierra Nevada mountains.
Additional Background Information
- Grew up in San Francisco Bay area
- Went to UC Berkley – Business Major
- Attended Hastings College of the Law
- Practiced law in San Francisco and Washington DC
- Moved to Reno, Nevada – great state for corporations and asset protection
- In 2000, became associated with Robert Kiyosaki’s Rich Man Advisory Group – has traveled around the world to share asset protection with Rich Dad seminar audiences
What is Asset Protection
- Using the structures that the states and federal government use to engage in business, to invest in real estate and, at the same time, to protect our personal assets.
What should a newbies do when they purchase a new property
- First thing – set up an LLC in the state of the property. An additional LLC can be set up in another state that might
- If you can take title in the name of the LLC. If not, after you take title in your name, then you transfer it into the LLC.
Do banks have problems with you changing title after purchase?
- Most shouldn’t but some do
- If you have a problem, the magic word to share with the bank are “Continuity of obligation” – You still owe the bank the money and the title change doesn’t change that
If you have two properties in one state, do you put the two properties in one LLC or set up two
- It’s your preference
- If they are both in one LLC and someone sues, they can take equity from both properties
Wyoming is the best place to set up your LLC
- If you have multiple LLCs in multiple states, they can run through the Wyoming LLC
- Wyoming does not have your name in public record
California is the worse place to have an LLC
- Weakest
- Least asset protection
What are the good, bad and the ugly entities?
- Good
- LLC
- LP
- Bad
- Sole proprietorships
- General partnerships
- Holding title in your own name
- Ugly
- Real estate held by a C Corp – double taxed
Horror Story
- He shared the story about a lady in San Francisco that got sued and then wanted to open an LLC. Opps! Too late!
Success Story
- Garrett shared the story about a guy who put his California LLC under his Wyoming LLC that saved him serious dollars and headaches.
Rap-it-Up
- Favorite Real Estate Book – Loopholes of Real Estate
- Favorite Business Book – Rich Dad Poor Dad
- Most Valuable Website – dictionary.com
- Favorite App – Real Clear Politics
- To 3 Things a REI Newbie Should Do:
- Get educated – books
- Get a mentor
- Invest
How to Reach Garrett
- Website: Corporatedirect.com
- Get a free 15 minute consultation
- Phone: 800-600-1760
Check out our other podcasts at olddawgsreinetwork.com.
Get a copy of our free 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.
Episode Sponsor: Meno Studio – menostudio777@gmail.com
