Asset protection structures are often better visualized than explained. The following diagrams represent some of our most commonly-used structures for real estate investment and syndication.
The Classic Two-Company Structure
Joint Venture – Single Asset (e.g., Fix & Flip)
Joint Venture – Multiple Assets
Triple Firewall with Anonymity
Anonymity Structure with Single Hybrid Trust
Anonymity Structure with Two Trusts
Hub-Sub Structure
Basic Limited Partnership Structure
Single Promoter Syndication
Multiple Promoter Syndication
Limited Partnership Syndication
Each of these is just an example with many possible variations. Our goal is to custom-design structures that maximize asset protection while providing for efficient operation. Simpler is usually better in our view, so we strive for structures that are clean and free of unnecessary entity clutter. Because this firm has significant litigation experience, we are also focused on being able to defend any structure we create if it is challenged in court.
It is suggested that one read our article Asset Protection in Texas, for valuable context in the interpretation and application of the foregoing diagrams. Other useful articles would include Partnerships and Joint Ventures and LLCs in Texas – The Series LLC. One size does not fit all. There is no substitute for careful analysis by an experienced real estate or business lawyer followed by customization of an asset protection structure that specifically suits the needs of the client. Clients should also discuss tax implications with their CPA before implementing any asset protection structure.
“Six years ago, David guided me through implementing an asset protection plan. I was sued by two major US banks. Both got six-figure judgments but no one collected a dime. David knows real estate law and asset protection!”
“During some late night internet research I stumbled upon some good legal info from David J Willis. I read several pages of well written real estate law, and decided to buy his book “Real Estate Law & Asset Protection for Texas Real Estate Investors.” Since then I’ve formed a new LLC with David, I was very impressed with the speed at which he answers questions and gets things done! Thanks David”
“David J. Willis is an expert in the field of asset protection. He provided excellent legal advice to me on several issues. The online process that David’s law firm utilizes is very easy to use and David responded to my questions very quickly. I am a lawyer but have no expertise whatsoever in this area of law. I will continue to be a client of David’s in the future and I highly recommend him.”
