Smart business people place their “eggs” into separate “baskets” by diversifying their investments, separating portfolios, carrying the right insurance, and even making sure proper records are backed up remotely. Ships are built in the same manner; sectioning of the hull into multiple compartments so that if one section is breached it can be sealed off so the ship remains afloat.
While the principle of diversification is universally embraced in business and investing it is shocking how many people unknowingly violate this principle and leave all of their assets vulnerable to being lost with one lawsuit. Most people can have their assets traced via on simple accessible piece of data, their social security number. By failing to diversify the ownership, everything is at risk if they ever suffer a legal attack. If you set yourself up correctly, even if assets are found they can be protected legally if they are owned correctly.
This leads us to an important principle of asset protection - compartmentalization. By having various assets owned or held by different entities that are separate from you, you dramatically reduce your risk of loss in the event of a legal attack. If one asset or entity runs into trouble, i.e. a tenant in your rental property slips and falls and sues, only the assets in that particular entity are at risk. They cannot lay claim to your other assets or entities.
A WRONG and POPULAR general rule of thumb is to limit the amount of assets in any one entity to 20% of your net worth or up to $250,000. In the asset protection world this is “common knowledge.” Unfortunately it is some of the worst advice real estate investors can get! We’ll explain to you in detail why this is dangerous advice at my private event in February!
On February 29 - March 2, 2008 I'll be conducting my private seminar for 14 people on income explosion and extreme asset protection where those 14 people will leave with everything set up and in hand and the knowledge of how to use everything they learn. I guarantee this event will be unlike anything ever presented because the event is for the 14 people in attendance and built around their needs.
Now go buy a house,
Gerald Romine
PS – This private ‘Step-By-Step’ Real Estate Wealth Explosion and Asset Protection PRIVATE Seminar is limited to just 14 attendees. It will be private. It will be intense. You will be blown away by the experience. I guarantee it. Applications are time stamped and hesitating even 5 minutes could cost you this phenomenal opportunity. Take action now - www.nobsassetprotection.com.
If you are considering protecting your assets, now is the time to complete your due-diligence and get yourself protected. By taking action now you maximize the effectiveness of your efforts and may even prevent lawsuits from occurring in the first place.
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