Hi Steve and all,
I would like to thank Steve McKnight for his book that I bought just last week.
I’ve finished reading the book “0 to 130 Properties in 3.5 years”, and guess what? I’m PUMPED to get out there and start making a difference in my life.
However, reading the book of Robert Kiyosaki (Rich Dad Poor Dad), I’m wondering in this game of real estate should I create and register a Company first before I start looking for an investment property? Should I do this first for the purpose of protecting my assets through Corporation?
I will appreciate very much for any response from Steve or any good hearted people to comment on my query. Thanks in advance.
Regards,
RAMKCompanies are rarely the best choice. If you wish a structure other than direct ownership you should speak to your accountant. Ask about Hybrid Discretionary Trusts.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi RAMK
A Company will give you very limited protection. I use a Discretionary Trust,some use Hybrid Trusts to get the negative gearing effect.
E-mail me if you want to talk about structures.
CATA
Asset Protection Specialist
[email protected]RAMK, It’s definetly woth getting some inside info from CATA on the best structures, also search this forum..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorRank your probably a newbie like me. I used Steves wealth guardian ( youll find it on this site without even trying) it was a bit pricey, but I have no hesitation in reccomending it. As the education I recieved from it was pricless. It wont tell you everything but it will give you a good understanding about corporate trusts and asset protection. Interestingly enough I asked my accountant or soon to be previous accountant some pressing questions relating to trusts. He only really had a basic knowledge of trusts and at times I felt like I knew more then him…. So now Im in the process of talking to somone who specializes in trusts.
ThomasUsually I have found most ‘professional’ investors (full time investors) have a company as the truste of the either a Hybrid trust or a Discretionary trust.
Hellman
Hi All,
It’s pleasant to hear responses from the good people of this forum and i thank heaps from the reply.
For me it’s important to protect my assets from any litigation or creditors if worse comes to worse, hence i think a hybrid trust company or a descritionary trust company is the way to go. Not only it gives protection to my assests to come but also it will reduce my tax liability through earnings distribution to amongst beneficiaries.
But the question is, “where can i find a person who can help me setup the trust?”
Is anyone here have attended one of Ed Burton’s Seminar a couple of years back?
Thanks for any reply,
RAMKseminars are one way to gain knowledge, but at the end of the day, you need a solicitor to get it done. Might as well learn from them and you could ask questions specific to your situation that no seminar can provide.
CATA is an asset protection specialist and has offered to help. Why not take him/her up on his/her offer?
(sorry cata, I really have no idea!)
We buy properties in Adelaide. Immediate Cash Settlements, No Agent Fees.
[email protected]
phone 0412 437 582Its a HE,
OK, lets try again!
Why not take HIM up on HIS offer!
thats better [blush2]
We buy properties in Adelaide. Immediate Cash Settlements, No Agent Fees.
[email protected]
phone 0412 437 582hi all
As far as I know each type of trust is for different reasons not sure why people are of the opinion that a company gives less protection.
I was of the opinion it gives more protection as
a its worth $2.00 and then after that it has atrust underneithe that has basically nothing as its a trust if the individual owns the trust then the individual is still in line if any problems occur discreationary and hybrid are only different ways that you can claim or disperse monies.
I am trying to organise atrust person to talk at the next sydney meeting to clarify a couple of these trust issues as there is alot of learning to be donehere to help
[biggrin] hi All,
As far as i know the property will be in the name of the trust, not on the individuals (trustee or beneficiaries) name. So if a creditor sues the trustee, it will not affect the assets of the trust.
I also have a thought that a Corporation can protect the asset (property). A creditor can sue the Corporation and perhaps can get only on what it’s face value, not on what assets the Corporation owns.
RAMK
Hi RAMK
The title would be in the name of the trustee, – trusts aren’t mentioned on title. But the trustee is only the legal owner, not the beneficial owner. If someone is sued, assets properly held in a trust are much safer as they are not the persons personal assets.
If you have a company as trustee, then this usually doesn’t or shouldn’t, hold any assets in its own right. Just in case it is sued. Directors can usually only be sued if they have done something illegal like insolvent trading etc.
Terryw
Discover Home Loans
Parramatta
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