JC 035: How to Protect Yourself at all Times with Scott Smith
The Rich Don’t Own Assets; They Control Them
Scott Smith is an attorney, an avid MMA participant and founder of Royal Legal Solutions, a boutique law firm that specializes in real estate asset protection across the United States and Canada. What makes Royal Legal Solutions unique is that Scott is a real estate investor himself and knows exactly what every investor worries about when it comes to protecting their real estate assets and money. Before founding Royal Legal Solutions, Scott was known as an aggressive and ruthless litigator who never backed down. He draws on this past experience to protect his firm’s clients and defend them should they encounter a lawsuit.
In this episode, Scott shares his wisdom regarding asset protection and how even newbie investors can get started protecting their assets and wealth. He explains the difference between insurance and Limited Liability Companies (LLCs), the type of LLCs avalible to real estate investors, and why a Texas LLC protects investors better than the LLC structures in other states. Scott shares specific scenarios that involve lawsuits and the result between an investor with an LLC and an investor whose assets are held in their personal name.
3 Words of Wisdom to Someone New in Real Estate
- You want an attorney and a CPA in the same business you’re in.
- If you’re a flipper, always use a series structure.
- If you have less than $50,000 in any single equity investments, you’re not a target for lawsuits.
Five Key Points:
- If you’re not protected and somebody sues you, they will literally take everything you have.
- If you own a property in your personal name, you have to be okay with losing it.
- Insurance protects you from accidents like negligence; LLCs protect you from everything else unrelated to accidents.
- Texas entities are relatively inexpensive and are very strong for asset protection.
- A series LLC works best for multiple properties.
- Georges St-Pierre, MMA Fighter
- Jujitsu and Rock Climbing
- Becoming a Supple Leopard 2nd Edition by Kelly Starrett
- Winning is defined by doing the things that are important or by accomplishing the goals you set out for day in and day out.
Reach Out to Scott Smith:
- Royal Legal Solutions
- Phone: (512) 757-3994
- Email: Scott@RoyalLegalSolutions.com
Thank you Scott for taking the time to share your knowledge on asset protection and LLCs with the Real Estate Locker Room audience.
Tune into all the episodes of The Real Estate Locker Room Show and sign up for my FREE monthly newsletter at www.johncarneyonline.com
© John Carney 2018
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