Land Trust Question
Hi all!
Have a Q regarding land trusts. I keep getting advice to put my properties into a land trust and have the LLC be the beneficiary and have a relative with a different last name be the trustee. Now, from what I understand, wouldn't the trustee have the ownership on the property? How would that benefit the LLC, wouldn't that take away some of it's control over the properties?
I am a newbie so bear with if the q is dumb.
Thanks!
JeanMarie
I have had several of my properties in land trusts. The trustee has full control over the property but depending on the trust only with the beneficiary's permission. They can sell it, rent it, mortgage, build, etc, etc. It is important that you pick a someone you absolutely trust.
You can make up a trust name like if the property is on Main street you can call it the main street land trust. You deed the property to the trust, have a trust agreement giving control to the trustee. You will also have an assignment of benefical interest, assigning your LLC as beneficiary of the trust.
Land Trusts are are good cloaking device for sure, but it does not protect you from liability--------you are still exposed. After meeting wilh a RE lawyer he suggested putting all our properties into seperate LLC's with our main LLC being the beneficary for asset protection.
We are in the process of cleaning up our exposure!!!!!!!!!
I will note that our trustee was able to get a mortgage with the trust in place, it took a little longer because it had to pass the trust department but it all worked out.
I hate this cya but you really should talk to RE attorney before you go switching title because there are tax implications
Good Luck
Eileen
Thank Eileen for your help. See, here is the problem. We want to form an LLC, but already have three properties. So if we roll the properties into the LLC, then a huge transfer tax will be tacked on, thus making it impossible to form the LLC with the properties. This is the dilemma that I have been trying to solve, and when we really want to do doesn't have anything to do with a land trust. I just thought it might be tax free that way. It is my brothers and I that want to join together and form an LLC. It's very discouraging. You seem to get taxed or penalized for so many things when it comes to real estate.
Thank you!
JeanMarie
I think I read in a post that the one brother who owns the properties can transfer it to a LLC with no taxes, then afterwards can add you and your other siblings to the LLC
try www.deadleads.com - give them as much info as you have especially the address. You can also get a license plate number and depending on the state get the info from DMV. Or get a skiptracer to get you the info for legal purposes
Your friend has the right to get a credit report on the debtor, and I'll guarantee you that the credit agency can get the debtor's SS, and probably DL # also, in matter of minutes...from the other info your pal already has.
Hire a skip tracer. They will get the info in a matter of minutes. The cost of collecting a judgement gets added on top of the original judgement, so it won't cost you anything. Don't forget, you are also entitled to interest.