Land Trust And LLC Refinance Question
Can anyone tell me if they have experience refinancing properties owned by a land trust and LLC? We have a new property that we'd like to put into a land trust owned by an LLC. We would like to refinance it in 2-3 years, and are concerned that we may have difficulty with this type of structure. I appreciate any insights or experiences that anyone can share about this.
We've closed a few thousand of them without a problem. Just make sure the trust deed (deed into trust) is done properly and that it properly reflects the owner to be the trustee, and not the trust (it's simply a matter of which comes first on the deed:
In other words, do this:
"…granted to xyz as trustees for the 123 trust, dated /x/x/
Not this:
“…granted to the 123 trust, XYZ as trustee, dated....”
Also understand that no title company will insure a land trust per se (unless they make a mistake...they're not supposed to). The idea is to rely on a double title search and not need new insurance...or you can just have the settlor get new insurance (down date or endorsement) prior to the transfer into the trust (this is one of several reasons that we always advocate that the seller always be and remain a beneficiary of the land trust until termination).
Bill Gatten.