Real Estate Developers and Landlords
The Michigan attorneys at Weisman, Young & Ruemenapp, P.C. have many real estate clients who range from large commercial real estate developers to landlords who own a single residential rental property. By understanding that each client's objectives and needs are different, we are able to assess each client's situation and utilize, as necessary, both simple techniques and highly sophisticated techniques in order to provide much needed asset protection planning.
For landlords, utilizing limited liability companies to hold commercial real estate and residential rental properties is an invaluable tool to protect your assets and escape the potential perils associated with owning such properties in your sole name. Indeed, we have witnessed many situations where a single catastrophic event at one of the properties put everything the real estate owner has worked for and accumulated over the course of his lifetime at risk simply because he did not avail himself of the liability protections that were available. We are of the belief that it is well worth the time and effort to establish and properly utilize a limited liability company if it enables you to protect your assets and your future from the potential financial disaster that could occur as the result of a single unexpected accident or occurrence.
Real estate professionals are exposed to a particular risk that is unique to their industry - the personal guaranty. Because the personal guaranty can result in a loss of the client's wealth if the guaranty is called, it is critical that very strategic asset protection planning be implemented to counter this situation.
The attorneys at Weisman, Young & Ruemenapp, P.C. also pride ourselves on being able to assist those developers who are already in financial extremis and fear they may lose everything. We have been uniquely successful in preserving assets and avoiding creditor collection efforts while remaining compliant with applicable laws.
For those high net worth individuals who may be interested in utilizing more sophisticated planning techniques, several additional options are available. One such option is to establish a domestic asset protection trust to hold the real estate limited liability companies. Still another viable alternative is to create a multi member parent limited liability company that will own subsidiary limited liability companies which hold the real properties themselves. This second structure is a particularly attractive planning alternative for a husband and wife. In such a structure, the couple will own the membership interest in the parent limited liability company as separate owners in order to insure the limited liability company is a multimember limited liability company.
As with all asset protection planning, there are many nuances involved that relate to every planning technique. However, the real key is a thoughtful approach that matches each individual's situation and helps that individual best accomplish his or her goals and objectives. You may contact the law firm of Weisman, Young & Ruemenapp, P.C. at 248.258.2700 for assistance with all of your real estate and asset protection planning needs.