I need that structure.... the fascination with entity

[Jonathan Bock]

Will the insatiable demand for this slow down ?   At first, I thought it was a joke and now I realize it's not.   

I speak with individuals that have no planning done at all but they can't wait to tell me about their entity.  

[Stuart Udis]

The sad truth is most who spend unnecessarily on asset protection have no understanding of what they paid for or understand how the entity structure will actually benefit them which is even more mind boggling. I suspect they drew you a flow cart and then your conversations went something like this:

 I need to transfer my properties to an LLC for anonymity.

They are told they are not anonymous & that is not asset protection

But I need it anyway for tax savings.

They are told there’s no meaningful tax advantages 

 But I can get non recourse debt because the LLC is the borrower.

They are told they still have to personally guarantee the loan

No, I can get non recourse debt I read all about it.

They are told yes, while that is true, the leverage is customarily low, applies to much larger CRE transactions and there are still carve outs. This is not an option for your Columbus or Detroit section 8 occupied single family home.

But I can still use an FHA loan and then transfer the property for $1 to obtain maximum protections of an LLC with maximum leverage.

They are told this can trigger due on sale clause and will still will be paying transfer taxes based on the properties assessed value + deed prep, recording and misc. title expenses. And by the way, these transactional costs disproportionately impact lower priced assets. 

Fine, I will just keep the property in my name and will collect my rents and and run my business through the LLC structure I just spent $10k on because that will keep me protected.