Commercial Real Estate Pro Network

J. Darrin Gross

'd like to ask you, Brett Swarts, what is the BIGGEST RISK?

Brett Swarts  

Sure, so I'm gonna apply it to the Deferred Sales Trust cuz we didn't actually touch on this, but I think this is really important. So it has to do with asset protection, right? So the more you own and the more you own in your own name and or that's not an LLC or that doesn't have proper insurance, the more you could be liable and have higher risk of somebody suing you and taking that asset okay. So by essence, owner's ownership, and Rockefeller said it well he said own nothing control Everything right? And and the idea was asset protection. So how do you lower risk? Well, on the deferred sales trust, guess what, you become the lender. You don't own the trust. So what you don't own, they can't take from you. Right by default. Now, could a creditor, you know, if they get a judgment against you? And could they potentially get the income off of the trust? Yeah, that's that's common. Right. But could they force the the the ownership, that's not the person that they got the judgment against? to do anything there? No, because they don't own it. So we do love that about the deferred sales trust, who does take and mitigate some of the risk? So I think part of the answer is the risk of just lots of ownership. Instructors are better not insured in a proper way that could be subject to judgments. If there's a way to mitigate that, I think that's that's really good. And I think that's probably the biggest risk I can think for this conversation here. That makes sense Darrin?