Flip Tip Summary
To make sure you can keep the empire you’re building, it’s critical that you set up your legal entities properly to protect yourself. Garrett Sutton, Attorney and Advisor to Robert Kiyosaki (Rich Dad), shares more in this FlipNerd.com Flip Tip.
Flip Tip Transcript:
Mike Hambright: Hey, it’s Mike Hambright from FlipNerd.com, and we have a quick VIP tip to share with you from attorney Garrett Sutton, who is a Robert Kiyosaki Rich Dad Advisor. He’s going to share a tip on the importance of setting up asset protection for your real estate business.
Garrett Sutton: Thanks, Mike. Again, my name’s Garrett Sutton. I’m a Rich Dad Advisor and attorney here in Reno, Nevada and the tip I’d like to provide today is, it’s really important to set up your asset protection right at the start. We’ve had clients that thought that they would wait to set up their entity, and then they get involved with renting the property and dealing with tenants, and they forget to set up the LLC to hold title to the property. And as long as the property’s in your individual name, you can be sued personally. And they can reach not only the equity in the property, but all of your other personal assets, your bank account, the equity in your house, everything.
So, at the start, when you’re buying that property, think about setting up your LLC to hold title to that property, and in many cases you can close in the name of the LLC. In some cases, you may have to wait a few days and then close in the name of the LLC. But as long as that property’s in your individual name, you’re personally responsible for what happens on it. So, always take the steps right at the start to set up your LLC to protect your real estate.
Mike: Thank you for joining us for another FlipNerd Flip Tip.
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Mike: Please note the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.