Self Funding property - Qu for Michael Croft

[Kevmeister]

Michael, does using a personal or corporate trustee make a difference in the protection these "cells" offer? I am assuming you are using a corporate trustee?

(BTW, I understood your term "cell" immediately since it's the common term to describe how terrorist groups tend to operate. =Isolated. Scary.)

 

[brains]

Michael,

Thanks for the explanation, thats a crazy, unrealistic scenario. But anyway, how can the local building authority and therefore the government be responsible for the stair ballastrade being too low?
And what is the local building authority ? The local council?


"Now what happens?? The tenant goes back to court and sues the authority that allowed it to happen aka the local building dept aka your govt. funded by your taxes."

 

[Sim]

Originally posted by brains
thats a crazy, unrealistic scenario

mmm... actually brains, you may want to spend some time one day going through the court proceedings for a few litigation cases out there - I think you might be surprised, or more the point, alarmed, at how circumstances can catch you unawares !

Something that was perfectly resonable at the time may be deemed to be unacceptable in court - and insurance companies always try to look for a way out !

And I'm not just referring to people trying to take advantage of the system - there are some genuinely unfortunate cases out there where court rulings have worked in someone elses favour - despite you taking reasonable precautions.

 

[Kevmeister]

Hmmm, I always thought the whole idea behind "Public Liability" insurance was to cover you for when you *are* liable (ie. IT IS YOUR FAULT).

So, forgetting the litigation itself, it's very alarming to know you can have public liability insurance for just such an occasion and the insurer backs out anyway.

See my point?

 

[geoffw]

Originally posted by JoannaK
Sanchez,

visit Steve's site at www.navarinvest.com.au . I highly recommend you book in to do one of his courses in which Steve goes in to great depth and detail about annuities, structure and strategy.

Actually, he seems to have two sites. This one does not have up-to-date information- http://www.navra.com.au has more up-to-date information, especially on courses

 

[Marge]

I agree with you Micheal, the world is scary out there regardless of what us "commonsense" people think. It is a great idea to keep things in trusts etc so at least you have a chance at protecting your assets so when the person sues, there is nothing to sue.

 

[michaelg]

Brains,

The idea is to ensure;

a) The properties comply with safety standards.

b) The properties have adequate building & contents insurance (contents mean fittings - not renters own property)

c) The properties have adequate landlord insurance.

If accident occurs the $10 million public liability cover from the landlord insurance kicks in.

Now the idea of seperate entity is to pay what they deserve, not to pay what they can take.

If the courts feel they can get everything from you, then you will read in the papers the courts have awarded a record payout - not because its fair, but because they had the means to get it from you.

Why do courts award such payouts? - because they can, Ive heard (source forgotten) a court will award what it can to take the burden off the public and target the private.

And if your insurance company can find a way to make you pay instead of them, then great!

To recap - the idea is to ensure you insure adequately to cover your obligations to society.

Michael G

 

[brains]

I agree Michael, but Crofty says that he will fold the entity if threatened by some legal action to protect the whole portfolio.

Fair enough, but i took it as trying to not meeting your obligations to a fair compensation claim by folding the entity.

I have a $20m PL policy (separate to my IPs landlord insurance), and i employed my solicitor to run a fine tooth comb over the wording and fine print of the policy to ensure that a situation does not arise where the insurance company can not pay out within the framework i have set for the policy.

I think thats a lot easier than setting up separate cells for legal protection.

 

[Michael Croft]

Hello Brains,

The only people who address me as 'Crofty' are friends I went to school or Uni with - do I know you? To them it is a term of familiarity and friendship; with you of the former I'm not so sure and the latter I don't think so.

Anyway, well done on your IP acquisitions - 7 this year I think you said!

Enjoy Byron Bay!

MC

 

[brains]

The only reason i used the term Crofty was because there were two Michaels in my post. You shouldnt mistake pragmatism for familiarity.

Have yourself a groovy christmas.........

 

[asy]

Brains,

May I humbly suggest MichaelG (or MG) and MichaelC will do nicely to distinguish between them.

This is what we have been doing for ages

asy

 

[brains]

Asy,

Thanks for the advice, but in this egalitarian democratic society of ours, isnt it ok to address people the way each individual (while still being polite) sees fit?

 

[suejones]

Thanks for your generosity in sharing your ideas & strategies Michael C! (& others!)

We appreciate it!

Sue

 

[Kevmeister]

asy:

I think there is more than a little animosity between brains and Michael Croft at present (as a result of the "secrecy" thread) so it may be better to not stir that pot.

 

[Michael Croft]

Hi Kevin,

No animosity from me, far from it, I actually like the guy.

I do play Devil's advocate at times to stimulate debate (just ask the wrappers from the old forum) and this is sometimes misunderstood.

Never really liked being called Crofty though

Regards, MC

 

[Sim]

Don't you miss those wrapping debates ?

 

[Aceyducey]

Where'o'where have all the wrappers gone?

I haven't seen much lately on this topic on the forum...

 

[Mr. Fabulous]

That's because wrapping is last years trend. This year it was renos (and also buying properties at stupid prices). Any wagers on what's going to be fashionable to do next year?

Mark
'no hat, some cattle'

 

[geoffw]

There's still wrappers around.

I'm still getting snail mail pushing one Wrap Pack quite hard- and it's been fairly regular.

I think the concept is very good- but perhaps when a concept becomes a seminar, the bandwagon is leaving?

 

[asy]

Originally posted by Kevmeister
asy:

I think there is more than a little animosity between brains and Michael Croft at present (as a result of the "secrecy" thread) so it may be better to not stir that pot.

Sorry guys, I didn't mean to stir anything except dinner!!
It's just that Brains is rather new to posting (as in, not from the old forum, really) and I thought I'd be nice and let him know how we have delineated between them in the past.

Sorry if I caused disturbance...

asy