For high net worth, high exposure individuals, asset stripping is a defensive strategy that can be used to protect their residences. Putting a high loan-to-value mortgage on residential property discourages creditors from going after that property. After all, they would have to put up a significant amount of money for a chance to get cash from the equity. But there has been one major issue that has prevented this strategy from being efficient. Lenders are loath to give such massive loans without compensating balances. So while the home may be protected, an equal asset is at risk.
Gelco Real Estate Funding has solved this problem. It works with lenders who will do those high LTV loans on top tier residential properties for well-qualified individuals. The funds from the loan are put in a trust in an asset protection state like Delaware and the trust guarantees the loan. Three things are achieved:
- 1. the home is protected from creditors,
- 2. Additional assets are not constrained and
- 3. The funds are protected from creditors who might sue at a later date.
Gelco Real Estate Funding, Inc
155 West 68th Street, Suite 2010
New York, NY 10023
Tel: (212) 655-9534
Fax: (212) 537-6087
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