092: Safeguarding Your Assets and Equity With Legal Protection with Scott Royal Smith

You’ve gathered all the investing information. You know what asset classes you want. You’re ready to pounce on some property deals. But before you jump in, have you ensured you’re legally protected?

On this episode of Zen and the Art of Real Estate Investing, Jonathan interviews Scott Royal Smith, founder of Royal Legal Solutions in Austin, Texas. As an attorney, Scott knows how important it is to safeguard your assets and equity with various forms of legal protection. Leaving your investments unprotected can leave you vulnerable to losing the wealth you’ve worked so hard to create.

Jonathan and Scott dive into their conversation by explaining the differences between an LLC and a series LLC. Scott elaborates on the mistakes people frequently make with living trusts and how you can avoid them by hiring people to help you with the details. He emphasizes why building wealth is boring 95% of the time, outlines how most wealthy people manage their wealth, and details the ins and outs of LLCs and series LLCs. You’ll also hear why Scott approaches California real estate with Delaware Statutory Trusts (DSTs) and what prompted him to start a law firm focused on real estate. Finally, Scott reveals the asset classes working well in the current real estate market, the entrepreneurial skills investors need, and what skilled professionals can do to help you protect your assets.

Learning more about LLCs and series LLCs doesn’t have to be complicated, and Scott Royal Smith masterfully breaks it down so you can grasp their importance in your wealth-building strategy.

In this episode, you will hear:

What investors are missing when it comes to protecting themselves from a legal standpoint
The most common errors Scott Royal Smith spots from mid-range investors who form LLCs
The biggest mistake people make as they’re building an estate plan
What a living trust is, why you may want one, and how you can use it to transfer real estate to your kids
Why the path to wealth is very predictable and often boring
The trick Scott uses to alleviate the boredom of scaling your wealth and business
The importance of hiring professionals to help you who have made money the same way you make money
The two types of LLCs and what each one can do for you
When Scott recommends using a Delaware Statutory Trust (DST)
How working primarily with real estate investors has helped him bring in more investors and get more referrals
Scott’s initial investments and what he’s investing in today
The asset classes that look good for portfolio building right now from a legal standpoint
The steps Scott recommends taking before your investing starts
How real estate investing has changed since the pandemic from Scott’s perspective
Taking action and making something happen

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