Asset protection for cash and marketable securities is easy enough: You can set up a foreign asset protection trust or LLC with a bank account to hold your liquid assets. While this approach works for those things that can be conveniently transferred by bank wire or a secure message between brokerage firms, what can be done to protect the things that cannot be wired or transferred overseas? How does one protect the equity in a house or an operating business?
The most common solution to protecting immoveable assets such as real estate or an operating business is to pledge the asset as collateral for a loan, and to then transfer the loan proceeds into a foreign asset protection trust or LLC. The idea here is that nontransferable equity can be converted into liquid, transferable cash that can then be conveniently parked with an overseas custodian.
At Lighthouse, we work with an extensive network of financial institutions dedicated to serving our trust and LLC clients. Several of these institutions offer quick, convenient financing for real estate, businesses, and other valuable immoveable assets located in the USA.
Typically, the entire loan process takes less than thirty days. Clients undergo a standard credit check while their property is appraised. Once the funds are advanced, clients may choose from a number of different deposit structures offering competitive interest rates. Oftentimes, clients with good credit find that the cost of maintaining the debt is less than the interest earned on the deposit.
If you are interested in how Lighthouse can help you to put the equity in your home or business to good use, please fill out our contact card or give us a call.