Al Aiello – Equity Stripping Excel

Features

1. Equity Striping Excel (or “ESE”) is a superior lawsuit prevention technique to prevent reverse veil piercing by using another second LLC (“lender LLC”) to create liens on properties in your “real estate LLC” so there is NO equity and NO target for claimants, money-hungry lawyers, other demons…along with total legal and tax compliance.
2. Using an LLC for every property is not only expensive but also does not totally protect you! Multiple LLCs do not totally remove the equity, they only segment the equity into a smaller size. They do not prevent reverse veil piercing!
3. For example, assume you have $300,000 equity in 6 properties, which is $50,000 equity for each property in six separate LLCs. You would still have $50,000 equity in each LLC, which over time will grow to a larger size. (Even $10,000 of equity is a prime target, let alone $ 50,000!) Equity stripping totally removes the equity including future appreciation.