Mortgage Your Business
Don't forget to mortgage your business. Debt-shielding your business
is as vital as shielding your personal assets. A mortgage against your
business can indeed be your best friend if you must combat your business
creditors. Encumber your business to a friendly lender and you position
yourself so that your lender can foreclose on your business and sell you
back its assets for a fresh start.
Your friendly mortgage also effectively lets you control your own business.
Should a litigant or unsecured creditor attempt to collect on their judgment,
your friendly mortgagee can intervene and, if necessary, foreclose and
re-sell to you your own business. No funds need change hands since your
mortgage holder can finance you with a new loan. Again, avoid sham mortgages.
Your friendly mortgage must withstand close scrutiny.
Your friendly creditor can be a relative who loaned you money to start
your business. If you have a friendly supplier, you may give this favored
supplier a mortgage against your business, if you're confident this
supplier will cooperate in the tough times. Meanwhile, if your business
is sued, this mortgage keeps your business protected.
Done correctly, you can become your own mortgage holder. Entrepreneurs
often set up Nevada corporations as a supplier to their own companies.
The Nevada corporation could indirectly be owned by the entrepreneur,
but operated through nominee officers and directors so that the owner's
affiliation and true ownership of the lender corporation is undetectable.
For further privacy, the Nevada corporation may be owned by an international company.
But you need do more than give a mortgage to your friendly mortgage holder.
Be prepared to validate your mortgage and prove that you actually owe
the money. Perhaps consulting or other services were provided by the Nevada
corporation. Can you document these services were actually rendered and
are worth what you say you owe?
YES, YOU CAN LOSE EVERYTHING!
You may think that your wealth is safe and that you don't need protection.
But don't delude yourself and accept reality — for every 60 minutes
you spend making money, spend 60 seconds thinking about how to protect it!