Ready to Protect Your Real Estate Investments?
In the latest episode of the Raising Private Money podcast, Jay Conner, the Private Money Authority, dives into the crucial topic of asset protection with the nation’s leading asset protection attorney, Robert Bluhm.
If you’re a real estate investor looking to safeguard your hard-earned assets, this is an episode you won’t want to miss.
Here are some key takeaways from the episode:
- The Importance of Asset Protection: Robert Bluhm provides valuable insights into the critical importance of protecting your real estate investments from lawsuits, tax liabilities, and IRS audits. He shares stories of individuals who faced significant financial implications due to not having proper asset protection in place.
- Types of Protective Entities: Learn about the different types of protective entities available to real estate investors, such as limited liability companies (LLCs), limited partnerships, trusts, and more. Discover how the right entity can provide the necessary shield to safeguard your assets in the event of legal challenges.
- Personal Property Trusts: Robert Bluhm delves into the concept of personal property trusts and how they can be used to protect assets such as vehicles, cash, and other personal property.
- Tailored Asset Protection Strategies: While emphasizing that there is no one-size-fits-all solution, Robert highlights the importance of tailoring asset protection strategies to individual circumstances and the specific state laws governing real estate
Whether you’re a novice or a seasoned real estate investor, the knowledge shared in this episode can help you fortify your financial security and mitigate potential risks.
Protecting your real estate assets is a vital aspect of cultivating long-term financial success in the real estate industry.
Don’t miss out on the opportunity to equip yourself with crucial insights and take proactive measures to safeguard your hard-earned investments!
Timestamps:
0:01 – Get Ready To Be Plugged Into The Money
1:14 – Jay’s New Book: “Where To Get The Money Now”- https://www.JayConner.com/Book
3:24 – Today’s guest: Robert Bluhm
6:32 – Who is Robert Bluhm?
8:21 – How many years have been helping people protect their assets?
8:41 – What is Asset Protection?
9:15 – Strategies for protecting your assets
10:31 – What is the best type of entity for asset protection?
12:25 – How complicated is the process of determining what kind of entity is right for you?
13:11 – Different states have different law
13:48 – Connect with Robert Bluhm – https://www.AssetDefenseTeam.com
15:15 – Know the rules, follow the rules and you will be okay
17:09 – Case studies/ stories that prove you need asset protection
20:53 – Own Nothing but Control Everything
22:05 – Personal Property Trust
23:46 – Bob Bluhm’s best advice on asset protection
24:52 – Bob Bluhm’s parting comment: “We will protect your assets to the greatest extent possible”
26:13 – Connect with Robert Bluhm – https://www.AssetDefenseTeam.com
Connect With Jay Conner:
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It is available FREE (all you pay is the shipping and handling) at https://www.JayConner.com/Book
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Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $67,000 per deal.
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Protect Your Real Estate Assets Now! Expert Tips from Robert Bluhm and Jay Conner
Jay Conner (00:01):
Are you a real estate investor and you’re still struggling to get your first deal because you don’t have the money or are you a wholesaler? You have some assignment fees and you want to stay in some deals, but you just don’t have the money to do it. Or are you a seasoned real estate investor? You’ve done a ton of deals, but you just want more funding without paying ridiculously high rates to hard money lenders. Well, if you answered yes to any of those questions, don’t go anywhere because I’m getting ready to plug you into the money.
Jay Conner (00:43):
Well, hello. Welcome to another fantastic, exciting, and interesting episode of the Private Money Academy podcast. I’m Jay Conner also known as the Private Money Authority. And if you are brand new to the show, you may not know that for the past three and a half years, I’ve been having fantastic guests and experts joining me here on the show. Today’s no exception, but before I introduce our special guest and my dear friend, I’ve got a gift for you for just being here on the show. I asked you just a moment ago, if you answered yes to any of those three questions, well, guess what, here’s how I’m going to plug you into the money. My new book just recently released is called Where To Get The Money Now, subtitle, How and Where To Get Money for Your Real Estate Deals Without Relying on Traditional or Hard Money Lenders.
Jay Conner (01:38):
This book has been in the works for three years, just got released and you can get it for free at 20 bucks on Amazon, but you can get it for free for me, just cover shipping. I’m going to give you a special website. You can go and claim this book at www.JayConner.com/Book And we’ll rush the book right out to you. Why would you want this book? This book is going to show you how to get funding for your real estate deals, regardless of your experience, regardless of your credit, it’s got nothing to do with that stuff. And I’ve got laid out in very simple terms, five easy steps to show you how to get over $2 million in funding in less than 90 days.
Jay Conner (02:30):
Just like I did when I was cut off from the banks. Well, if you’re brand new to the show who in the world is Jay Conner and why am I qualified to be on here as the Private Money authority in short Carol Joy, my wife and I started investing in real estate back in 2003 for the first six years. We relied on local banks and mortgage companies. And along with the rest of the world, I got cut off with no notice from the banks, along with everybody else for the financial global meltdown. Well, my definition of coincidence is God’s way of staying anonymous. I was introduced to this wonderful world of Private Money. I have not missed out on a deal since Carol Joy and I right now have 47 private lenders funding, our deals, and this book that I’m going to ship to you or show you exactly how to have the same blessing and never miss out on a deal.
Jay Conner (03:21):
So I’m glad you’re here. It’s now time to introduce my special friend and guest. My friend that I’ve got here on the show with me today is the nation’s hands down, leading asset protection attorney period. And he didn’t just start doing this yesterday. He’s been an attorney now for around 30 years, maybe a little bit more, and my guest he’s done it all. He’s been a trial lawyer he’s represented Fortune 500 companies as well as representing smaller and you know, privately-held businesses as well while he’s a fantastic speaker. He knows what he’s talking about. And he has shared the stage with the big names. I mean, he’s been on stage with Trump, Clinton, Bush, Margaret Thatcher Gorbachev Dan Kennedy, Jay Abraham, Susie Orman, and the big-name Robert Kiyosaki. So he’s got, he’s got an inner circle of some very well-known names.
Jay Conner (04:29):
In addition to that, he’s the author of several articles on asset protection and he’s also a contributor to the asset protection handbook. Now my guest specializes in protecting real estate investors from lawsuits, from also helping them lower their taxes and not pay any more tax than they need to, and also reducing the risk. I’m an IRS auditor. Let me tell you, something folks. I know personally what it’s like to go through an IR S audit. It took like nine months to go through it, but you know, what’s cool at the end of the audit? The IRS owed me money. How about that? Anyway, my special guest and his team worked with both US investors and international investors as well that are purchasing the United States purchasing real estate in the United States. So my guest and his team have helped thousands and thousands of real estate investors all over the world grow their wealth quickly and securely.
Jay Conner (05:36):
And I just can’t tell you folks how excited I am to have my special guest and my dear friend, Mr. Bob Blhum right here on the show. Bob, welcome to the show.
Robert Bluhm (05:48):
Thank you, Jay. Great to be with you.
Jay Conner (05:50):
It is great to have you, Bob. It was nice to see you a few weeks ago in one of our fellow mastermind meetings that we are in and, and Bob, I’m just so excited to have you. I mean, I wish we had more than 30 minutes for you to dive deep into this asset protection, but what I want to at least accomplish while we’re together here on the show, Bob is for you to give folks an overview as to what do you mean by asset protection? Why is asset protection important? Maybe share a story or two with some folks. You know, that their life would have been a lot different if they had had asset protection. But before we get into all that, Bob, how much do you take a moment, introduce yourself, and tell people how in the world it is that you’re qualified to do what you did?
Robert Bluhm (06:41):
That’s a good question, Jay. I started as a trial lawyer many years ago, and I sued all kinds of people and companies and defended people in companies as well. And one case just made me quit. And it was a case where my client, the big, big company I was representing had fired some guys because of their age and that’s age discrimination and that’s illegal. Can’t do it. And so they had a great case. They should have won the case, but we ended up winning because we were just playing better lawyers. And you know, so that’s a real disillusionment because it’s not who’s right or who’s wrong. Who’s got the law on their side or who doesn’t it’s, who’s got the better lawyer a lot of times? And sadly you know, that case made me sad when I saw, how devastated these guys were because they were never going to get another job. They’d lost their income and they were going to lose their homes and everything. I just said I’m not going to do this anymore because I’m not here to hurt people. I’m here to help people and that wasn’t helping people. So I quit suing people and companies, and I switched sides about 15, 20 years ago. And I do asset protection now, which means I protect people from lawyers. Like I used to be so
Jay Conner (07:57):
Well when you’re, when you have sat on the other side of the desk or in the law room, you’ve sat on the other side of the room. Then you’ve got the experience to know where the other guys and gals are coming from, right?
Robert Bluhm (08:12):
Yes. I’m afraid I do. And I know all the tricks and all the things that are going to stop them cold too. So that’s what we do. We stop them cold.
Jay Conner (08:19):
How long, how many years have you been helping people protect their assets
Robert Bluhm (08:26):
At least 15 and going on 20 so long, long time, long time.
Jay Conner (08:33):
I got you. So when you say asset protection, I just don’t want to assume that our audience is really on board and understands what you’re saying. So really in simple terms, I don’t want to make it any more complicated than it is, but what’s your definition of asset protection?
Robert Bluhm (08:50):
Well, asset protection is creating roadblocks for potential creditors to frustrate them and discourage them from suing you. It’s getting assets out of reach of potential creditors into protective entities and making sure that you sleep well at night, knowing that you’re well protected. What you’re working so hard for is going to stay yours instead of having somebody take it away from you.
Jay Conner (09:14):
Gotcha. So in the time we have, if you would just share some of the strategies that you help real estate investors specifically, I suppose you could help people other than being a real estate investor. But what are some of the strategies that you advise and employ for your clients to, you know, protect their assets?
Robert Bluhm (09:42):
Yes. Well, the first thing in the, in the most fundamental, basic starting point is don’t do real estate without an entity. In other words, don’t own investment properties in your name, don’t do deals in your name because if you do, you have unlimited personal liability, let that sink in for just a minute. You have unlimited personal liability, potentially speaking, if something goes wrong. So what we want to do is give you limited liability. That means we’re going to use entities like a limited liability company a family limited partnership a trust a corporation or other types of entities that are completely legal and available to people to use, to limit their liability.
Jay Conner (10:29):
Yeah. So the type of entity that real estate investors use to invest in, or the entity that’s holding assets, there’s LLC fees, there’s a land trust. There’s another one that you just said is the entity that the person should be using. Is that like a depends answer? It depends on the rest of their world, or is there an advantage to using an LLC over a land trust or an advantage of land trust, or are there other specialized trusts that you have that give even greater levels of protection?
Robert Bluhm (11:13):
Well, it depends on the answer because everybody’s different and there’s no cookie-cutter, one-size-fits-all solution. But what we do is look at the person’s business, the extent of their real estate investing where they’re going, their momentum, their age, what they have already, and what they hope to have in the future. And all those things factor into the type of structure that we would create. Often it’s a structure rather than just a simple LLC here or another entity there. It’s, it’s more asset protection is more than just setting up an LLC for instance. But, to answer your question, if we wanted to generalize limited liability companies have become the go-to tool for real estate investors. They are the primary vehicle that real estate investors would use to once again, limit their liability. But having said that land trusts we use in combination with limited liability companies will use other types of entities, other trusts, specialized trusts, as you mentioned, and limited partnerships in certain circumstances. So it’s a mix of entities that we use, depending on the state, depending upon the person and their assets,
Jay Conner (12:25):
How complicated is it for someone to go through the process of actually figuring out what is best for them?
Robert Bluhm (12:34):
Well,l that’s what we do. So it’s not complicated for the client. It’s complicated for us. We handle that. And we do a lot of time analyzing, researching, and making sure that we’re getting exactly the right kind of entity for that person in the particular state where they’re investing. So it’s pretty involved. There are many, many different types of LLCs. The last count I had was 24 different types of LLCs. And the latest one that just got created was July 1st in Wyoming, a special kind of LLC for crypto investing.
Jay Conner (13:08):
Yeah. Wow. I hadn’t even heard of that myself. So you just said something. So really, part of this formula for people is it depends on what state they’re investing in or states that they’re investing in different laws, different states, right?
Robert Bluhm (13:26):
Correct. Some states are very protective and other states are pretty awful.
Jay Conner (13:31):
Yeah. I got you. Just in case Bob, that we’ve got a listener or viewer, that is going to have to jump off early. I want to go here and get out to everybody, how they can connect with you, either your website or the best way. What’s the best way people can connect with you and have a conversation about, how you know how to get themselves protected?
Robert Bluhm (13:55):
Well, sure. You can contact us by going to our website, which is www, as you see on the bottom of the screen assetdefenseteam.com, and we’ll be more than happy to send you a link that you can use to schedule a time to talk with us and we’re happy to do so.
Jay Conner (14:13):
Okay. That’s one of us so that everybody in case you’re having to jump off early to contact and I’m telling you folks, Bob Bluhm, hands down is the nation’s authority on asset protection. And if you are doing one deal, one deal, you need asset protection because Bob, how many deals does it take to put somebody underwater?
Robert Bluhm (14:38):
Just one, as you say, Jay one deal. And you know, some people may think, well, I don’t have any assets to protect, but the problem is if you get sued, they get a judgment against you. And if they can’t satisfy that judgment right now, they can keep that judgment active for years and years to come. So if they got a hundred thousand dollars judgment against you, the first hundred thousand, you actually accumulate can go to pay the judgment. That’s a bad situation. So you want to just keep yourself well protected as you go out doing deals, making offers, buying, and properties, using entities. Don’t do it in your name.
Jay Conner (15:14):
Yeah, I so do part of your services also involve protecting people say from, I mean, even, even the IRS or those, I mean, all kinds of entities or is there, is there like a specialty group of predators that you specialize in protecting people?
Robert Bluhm (15:38):
Well I mean the predators are out there and they come from all directions. There are many, many, the IRS is one of them, but you know, the goal is this, there are clearly defined rules that all of us can follow. If we just know the rules and follow the rules, we’re going to be okay. In other words, we want to operate our LLC, according to the rules that are set out in the operating agreement, we want to use the right kind, or entity, that has a low audit risk. Some entities give you an 800% higher risk of an IRS audit, believe it or not.
Jay Conner (16:14):
Did you say 800% higher?
Robert Bluhm (16:15):
800% higher. That’s right. And we can lower that risk dramatically by just using the correct type of entity. So, you know, the IRS has a hit list. They go after certain sole proprietors who are at the top of the list, by the way, they want to go after anybody doing business as a sole proprietor because that indicates a lack of sophistication and they have a pretty good idea that they’re going to be able to get some money out of you. You’re probably not following the rules if you’re a sole proprietor. So that’s you know, that’s one thing, and then other entities will trigger an IRS audit. So we want to keep you out of harm’s way.
Jay Conner (16:52):
Yeah. So again, everybody Bob’s website where you can schedule a call is www.assetdefenseteam.com assetdefenseteam.com. So Bob, you know, you’ve been doing this for several years. My guess is you have got probably a longer list of actual case studies and stories than you would care to have of what happened to people. That was pretty ugly or that if they had had asset protection in place, as you provide, then they wouldn’t have had to go down that pain and difficulty and you know, losing a lot of money, I suppose. Can you share a story or two with us about what did happen to some folks? And if they had something else in place, how they would have been protected,
Robert Bluhm (17:51):
You bet Jay, and you know, not only losing money, but losing sleep, losing you know, the stress affects your health. When you’re in a lawsuit, it’s not a pretty time of life. So we just want to avoid it and keep you out of lawsuits. To the best extent we can. Just some quick stories. Here’s a situation. And these were all clients who came to us, having done the wrong thing, not being structured properly, and looking to us to help them out of their situation. One was a woman whose husband was driving their car, which they owned in joint tenancy, which is a form of joint ownership. The husband got into an accident, killed one man, and another man million dollars worth of medical bills. The wife who was a prolific real estate investor with millions of dollars worth of real estate was sued.
Robert Bluhm (18:41):
Why? Because they own their car jointly. And the law says. A liability on one joint owner means that assets owned jointly can be seized. You could do nothing wrong yourself, and yet you could lose your assets. That’s one, example. Another example is somebody was this person was owned a piece of real estate and it was like a field at several, several acres. And they owned it with a whole group of other people that typically may be family members, they owned it once again in joint ownership, in a form of joint ownership. And they found environmental contamination on the property. The EPA swooped in and had to do a cleanup. It was a multi-million dollar cleanup and of the eight people who all owned the property, seven of them were broke. And guess who got to pick up the whole tab? The one guy who had any money that is called joint and several liabilities. So it is a really difficult thing. Now, if they had owned that property in a, say a limited liability company or a limited partnership, he would have not been liable for all of the other types of all the other people’s liabilities. So it’s very, very important that we own these assets and that we do business using protective entities where our liability is controlled and known and limited.
Jay Conner (20:13):
Yeah. So back to the first case study the lady that owned millions of dollars, but they own the car in a joint tenancy. What could they have done otherwise that would have protected her real estate holdings to have prevented that scenario
Robert Bluhm (20:32):
A good question could have owned those assets in protective entities, limited partnerships, or limited liability companies. So if a judgment had been taken against both of them or either one of them none of those real assets would have been at risk, they would have been out of reach of creditors.
Jay Conner (20:50):
Wow. So let me ask you this question. Is it generally speaking? Cause I know everybody’s different, but generally speaking, is it good advice? Just not to own anything personally,
Robert Bluhm (21:05):
It’s good, it’s good advice that you know, John D Rockefeller, one of the first, you know, the billionaire said own nothing and control everything. So just realize, you know, and we all need to make our calculations, but whatever we own in our name, if there’s a lawsuit or a judgment against us, those assets could be seized to pay that judgment. So just think that through, ask, you know, if I could get these assets out of my name, would that make me safer and more judgment-proof? And the answer generally is yes.
Jay Conner (21:39):
Yeah. And again, folks, my special guest today is Bob Blhum. The nation’s leading expert on asset protection. You can connect with him, or schedule a call at www.AssetDefenseTeam.com. And you will be in touch with the hands-down expert company to get your assets protected. Bob I hear, other people in the past talking about like there are different kinds of trust, right? There are land trusts, there are all kinds of trusts. I hear people talking about a trust like a vehicle that would be in it’s like a personal something, another trust. And you speak to that and tell us what that is. And when would you use it?
Robert Bluhm (22:28):
Well sure. And we can use what is called personal property trusts. And these are trusts that own just that. Some of our personal property. And you know, you raise the issue of a vehicle. We like to think of assets as Is this a type of asset that could cause a lawsuit or is this a kind of asset that would never cause a lawsuit? So for instance, cash, securities stocks, bonds, mutual funds, and bank accounts, no one’s ever going to have a slip and fall on a bank account. So those are low-liability assets that we don’t want to mix with high-liability assets. So in other words, a car getting caused an accident, boats, toys, jet skis, airplanes, and all kinds of things can be high liability assets, and real estate frankly, is a higher liability asset too. So we generally don’t want to mix a car into an LLC where we own our rental properties, or we don’t want to mix a car high liability asset where we have our bank accounts, we would use separate entities for those. So, yes, you’re correct. There are hundreds of types of trusts. Some are irrevocable, others are revokable some are living trusts. We set up when we’re alive, others become effective. When we die called testamentary trusts, hundreds and hundreds of types of trusts, all of which can do different things.
Jay Conner (23:45):
Got you. So, you know, you have consulted with and advised hundreds and hundreds of people over the years, once two or three of the most common pieces of advice that you’ve given people. When you sit down with them to discuss, you know, their situation.
Robert Bluhm (24:02):
Well, common pieces of advice are don’t own real estate assets in your name and get those out of your name into a protective entity not difficult to do, but what is difficult? The trick is to get the right kind of entity the entities that may be the right kind of entity in one state would be exactly the wrong kind of entity in another state. And what would be perfect for Jay Conner would maybe not be perfect for somebody else. So it depends. And that’s why we need to consult somebody knowledgeable about the subject and get you better protect
Jay Conner (24:42):
Again. Folks you’ll want to reach out to Bob and his team at www.AssetDefenseTeam.com Bob parting comments for our final audience.
Robert Bluhm (24:56):
Wow. parting comments. Everybody can have a structure that is ideal for you, and we’ll protect your assets to the greatest extent possible. There are, as Jay mentioned, I think a long time ago, there were no guarantees because you never know what argument the plaintiff is going to make. You never know what the facts are going to be because these are events we’re trying to protect from that have not yet happened. But, the general idea is assets in your name are capable when there’s a judgment against you to get those assets out of your name, into protective entities. And be careful about what type of entity you use, because it’s not going to be a cookie-cutter, kind of go to an online service and just get any old entity it’s not gonna work. We see a lot of completely worthless and ineffective types of LLC corporations or limited partnerships as well. So get with somebody who knows what they’re doing. Doesn’t have to be me, but get with somebody. And by all means, get a structure that is ideal for you and your family. The question is, how secure do you want your family to be?
Jay Conner (26:08):
Awesome, Bob, thank you so much for joining me here on the show. Valuable information. One more time. Folks connect with Bob at www.AssetDefenseTeam.com. Bob, God bless you. Thanks so much for joining me, my friend.
Robert Bluhm (26:26):
You bet. God bless you too Jay. Pleasure.
Jay Conner (26:28):
Right. There you have it, my friends, another episode of the Private Money Academy podcast, I’m Jay Conner, the Private Money authority. We always really appreciate it if you would review us on iTunes. Give us five-star reviews, subscribe, and rate reviews. So you don’t miss out on any of these awesome, fantastic episodes of the Private Money Academy podcast. So I’m Jay Conner, the Private Money authority wishing you all the best here’s to taking your business to the next level. And we’ll see you right here on the next Private Money Academy Podcast.