Asset Protection for California resident - mix of CA & Non-CA RE

[Randy Choi]

Hello, 

I am new to the group.  I was doing some due diligence with best practices for asset protection on LTR.  Our situation is a little complicated since the owner is a CA resident with a mix of CA and NV rental income properties.  Does anyone have a good referral to a RE attorney or Asset Protection specialist located in California or that understands California?  Thanks in advance!

[Jason Marino]

Hi Randy,

Your situation is not that uncommon, and there are very good structures for California investors that have properties inside and outside of the State. These structures provide asset protection while being able to largely avoid the California franchise tax legally. A way that this can be done is using a vehicle called a Delaware Statutory Trust. This entity avoids the California franchise tax, is able to replicate itself like a Series LLC in order to hold numerous assets, and has limited liability protection.