Anyone use STR Law Guys?

[Pablo Flores]

Anyone use their service to set up an AZ limited partnership to protect your investments? I’m very intrigued by the service and how detailed the protection strategy is. Curious as to what anyone else’s experience with them has been.

[Lauren Kormylo]

I have no knowledge of them, but the founder is in a recent interview with Bill Faeth on Youtube.

[Michael Elliott]

Quote from @Pablo Flores:

Anyone use their service to set up an AZ limited partnership to protect your investments? I’m very intrigued by the service and how detailed the protection strategy is. Curious as to what anyone else’s experience with them has been.

I have not worked with them but heard Jeff speak at a conference last week.  Extremely impressed with his knowledge and highly recommend looking into working with him. I will be setting up time to talk to him shortly myself.

[Zach Edelman]

I have not used them but heard Jeff speak at the STR Wealth Conference last week. Echo the fact that he's super impressive and knowledgeable about the law as it relates to STRs. For my first investment I will certainly be consulting him.

[Marissa Contreras]

Also wondering about this! I looked into Pace Morby's structure and these guy's structure and I think I liked this one more. So much to think about UGH! Pablo Flores did you end up using them? I am considering using them also... Oh! And I see you're in Palm Springs. I'm in Temecula and I will be out there August 8th. Would love to connect!

[Pablo Flores]

@Marissa Contreras

Hey Marissa! I love connecting with local investors. I actually live outside of Coachella Valley; I just run my business there. But I’m SoCal based and have thought about investing in Temecula. Let’s definitely connect.

I actually ended up going through with STR Law Guys. They definitely know their stuff and seem like they set up a bullet proof structure. Although you never know until **** hits the fan right?

[John Malone]

@Pablo Flores there are 0 bullet proof structures. Most savvy attorneys can pierce through any LLC/LP structure. Can you make it difficult for them (the goal)…Yes. Bulletproof, certainly not

[V.G Jason]

Quote from @Pablo Flores:

@Marissa Contreras

Hey Marissa! I love connecting with local investors. I actually live outside of Coachella Valley; I just run my business there. But I’m SoCal based and have thought about investing in Temecula. Let’s definitely connect.

I actually ended up going through with STR Law Guys. They definitely know their stuff and seem like they set up a bullet proof structure. Although you never know until **** hits the fan right?

How much did it run you?

[Pablo Flores]

@V.G Jason

$7500

[Pablo Flores]

@John Malone

Yes you are correct I misspoke. The goal is to make it difficult enough to to deter attorneys from going after your assets.

[Nate Meeker]

Quote from @Pablo Flores:

Anyone use their service to set up an AZ limited partnership to protect your investments? I’m very intrigued by the service and how detailed the protection strategy is. Curious as to what anyone else’s experience with them has been.

 I have not, but be careful of costly entity structures. Often times I see investor clients spend way too much money on fancy entity formations and annual filing fees. 

[Jenni Vega]

RUN 🏃‍♀️ as fast as you can. They still haven't provided what they promised to a few friends of mine and it's been a few years for each. I did a consult with them and when I passed on their ridiculous fees to several other reputable attorneys that do the same thing they about choked. 

[Sarah Kensinger]

Quote from @Jenni Vega:

RUN 🏃‍♀️ as fast as you can. They still haven't provided what they promised to a few friends of mine and it's been a few years for each. I did a consult with them and when I passed on their ridiculous fees to several other reputable attorneys that do the same thing they about choked. 

These comments seem to abound when any attorney company is brought up on these forums. It's always a fairly new poster, with one or two posts and no profile picture.

[Josh Davidson]

I spoke with Jeff of social media fame. He's a former personal injury attorney. Now his pitch is that he can protect you from his former self. He proposed two possible holding solutions for my situation. Quoted prices were, between $8K and $13K + several thousand per year to maintain them (renew LLCs, registered agent services etc.). In my view these prices were outrageous. You can form LLCs on your own with no lawyer. You can file annual reports as required in each state yourself and pay the fees. And if you don't want to do it on your own, you can pay someone far less to do it for you. 

More concerning to me was that his sales pitch highlighted several 'risks' that his structure was designed to avoid that were not real risks in my situation. 

1. He said that transferring my properties from my name to an LLC would trigger the due on sale clause. My loans are all Fannie Mae. Fannie explicitly allows transfers to LLCs when the loan originated after June 2016 and when the LLC is controlled by the original borrower (source: Fannie Mae Servicing Guide - D1-4.1-02, Allowable Exemptions Due to the Type of Transfer). So, not a reason not to use LLCs, in my situation.

2. He suggested that I use land trusts to avoid the 'due on sale' clause. However, the Fannie Mae servicing guide also clearly states that those transfers DO trigger the due on sale clause. 

"For purposes of enforcing the due-on-sale (or due-on-transfer) provision, if any, in the security instrument, the
servicer must consider all of the following situations to be a transfer of ownership:
- the purchase of a property “subject to” the mortgage loan,
- the assumption of the mortgage loan debt by the property purchaser,
- any exchange of possession of property under a land sales contract or any other land trust device, and
- in cases in which an inter vivos revocable trust is the borrower, any transfer of a beneficial interest in the
trust." (Source: Fannie Mae Servicing Guide, D1-4.1-01, Determining Whether a Transfer of Ownership Is Permitted)

3. He claimed that transferring ownership to LLCs would trigger transfer taxes which also justified why I needed land trusts. While I can't speak to all states, the states that I hold property allow exemptions when there is no change in the beneficial owner (e.g. same person controls the LLC.)

4. Lastly, there is lots of talk about how an attorney can get a judge to 'pierce the corporate veil' and come after personal assets. Again, while this may vary by state, the states where I have LLCs explicitly prevent piercing the veil of single-member LLCs except in cases when there is fraud.

CT General Statutes "Sec. 34-251a. Liability of members and managers. (a) A debt, obligation or other liability of a limited liability company is solely the debt, obligation or other liability of the company. A member or manager is not personally liable, directly or indirectly, by way of contribution or otherwise, for a debt, obligation or other liability of the company solely by reason of being or acting as a member or manager. This subsection applies regardless of the dissolution of the company.

(b) The failure of a limited liability company to observe formalities relating to the exercise of its powers or management of its activities and affairs is not a ground for imposing liability on a member or manager of the company for a debt, obligation or other liability of the company."

It seems that some people use social media to develop a following, create fear in their audience, and then put themselves out there as the only one who can protect you. They charge a huge premium and take advantage of some people's ignorance. Perhaps they are right for some and some people find the high costs 'worth it.' I was turned off by the approach, style, and even more importantly that the solution suggested was not correct for my situation and the rationale for it contained factual errors for my situation. Buyer beware.

All of the above is based on my own research and is my opinion. It's not legal advice and I'm not a lawyer. My experience was my own and reflects my understanding of our interactions.

[Sean O'Keefe]

Nah

[Anthony Dupre]

@Josh Davidson Thank you for your input. I am a newbie and just starting to learn about asset protection. I have the impression like you that they all create these type of unique structure to tell you we are your only savior and the only person who can protect you after paying 1000$ and 1000$ of dollars.
Would you mine sharing what type of structure you have find to be good for people who start? any book, podcasts or resource explaining it without trying to make sure you are agreed and need to subscribe with them at the end?
what is the best place to start? any recommendation or Lawyer? Thank you a Million for any help.

[John Malone]

@Josh Davidson if a lawyer intent on litigating wants to get to you, they will get to you

[Aaron Clark]

I just entered into a contract with STR Law Guys. I set up my LLCs using IncFile (Bizee) before meeting them for the first time, so I just needed help form a land trust ($800) and transferring the property into said land trust ($500) in my LLC. I can confirm that I do in fact have a "due on sale" clause for my mortgage and the state of FL has a pesky "Documentary Stamp tax" on property transfers which would have cost me $2,400. So it was a no-brainer to pay $1,300 for there services, which saves me $1,100 at the end of the day. Doesn't seem too pricey to me.