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
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.