Land Trust
Can someone explain to me exactly how the Land Trust works. I am thinking of putting my own home along with a rental property I just purchased into a land trust (seperate of course). I spoke with an attorney who is also a Real Estate Broker and he informed me that the Land Trust was a bunch of BS. That I must be listening to those get rich books and tapes. Wanted to get some insight and positive feedback if there is any from savvy REI's. Any comments or suggetions would be very helpful.
Would love to, need to know what type of LD you are looking at.
What's an LD?
Second the motion.
Did you mean LT for Land Trust.
John $Cash$ Locke
Hi all, this is basically a ? rather than a comment. If you have a pre-foreclosure and put it in a LT, what happens if you're not able to assign the interest for $. and the foreclosur falls through. What are the consequences concerning the Trust?
Not LD but LT. "Land Trust" Us folks in the show me state just get a little creative some times LOL
Michelle,
It seems that we both have questions about Land Trusts. You probably already know what I know. Here's my two cents. It would be, indeed, a scary thing, if no one else knows more about this than I do!
(I'm extremely new to this webiste and forum. Last week I posted my request for help regarding the Land Trust, but I don't see it posted anymore. I wonder what happens to old forum topics? Yep, I'm new at this. Maybe I'll try posting it again?)
I have a plethora of forms from Ron LeGrand's Cash Flow System (based in Florida), but I need to be certain that I am using forms that are legal in California! In fact, I don't think I can use any of the forms that the course provided. Here is some of the things about Land Trusts I got from the course. Ron's guest speaker was Shawn Casey, a lawyer from Pittsburg, PA. He was the one to explain the Land Trust and how to fill it out. He warned that many would not understand or know about Land Trusts. I may have to follow his suggestion and call a Title company in Chicago, as this is where the Land Trust originated. Apparently, Title companies in Illonois have this Land Trust down pat.
LAND TRUST:
A Land Trust is merely a "vehicle for holding title to a property". The Land Trust owns the property and the beneficiary owns the Land Trust. One uses a Land Trust for each
individual property. The beneficiary appoints a Trustee to sign the deed, title and any other documents that are recorded down at the court house. There are no tax consequences whatsoever in using this Land Trust. As an
individual real estate investor or a corporation, there are a lot of benefits in using Land Trusts.
I am presently am in possession of an "AGREEMENT AND DECLARATION OF TRUST" (LAND TRUST) form which is "suppose" to be
legal in all 50 states, but wonder about its legality for California. A second form you use in conjunction with the Land Trust is called an
"ASSIGNMENT OF BENEFICIAL INTEREST", which is how you transfer the Land Trust to a new beneficiary. The third document that is used in conjunction with the Land Trust is the "WARRANTY DEED TO TRUSTEE", which legally transfers the property into the Land Trust by the Trustee, and is the document that is recorded down at the court house. To summarize:
a.. LAND TRUST (YOU DO NOT RECORD THIS DOCUMENT)
b.. ASSIGNMENT OF BENEFICIAL INTEREST (YOU DO NOT RECORD THIS DOCUMENT)
c.. WARRANTEE DEED TO TRUSTEE (YOU DO RECORD THIS DOCUMENT!)
I have these forms, but, I don't know if these forms have all the necessary clauses required by California law. Probably not. They may be called something else, here in CA, if they exist at all. This is where I need some help.
I know that these are not real estate forms, per say, but are an integral part of investor's real estate transaction. Outside of Ron Legrand's course, I can't find anyone that knows about it out here in California.
IS ANYONE USING A LAND TRUST IN CALIFORNIA?!?!?
Good luck, Michelle! Please let me know if you find out anything more about Land Trusts! We both need to know!
Peace,
John : )
BS??? Does your sometime Atty---sometime ReLitter mean BS as in: Berry Safe? Berry Simple? Berry SOLID? or is it that he has not undergone either the Investment or Research to give you a WELL-INFORMED LEGAL OPINION?
Or has your Attorney come down with a case of what my friend BILL GATTEN calls:
'Cognitive Rigidity'?
Here's my take of your Atty's 2 Cents:
Unlike most professionals e.g. a Doctor, lawyers mostly (not all) suffer from the above listed DISEASE mostly B/C they are trapped inside of an EGO VACUUM.
For instance say you went to visit your physician due to a question and/or concern you had over some sickness or pain you've been experiencing in your head.
You ask the Doctor of his opinion about BRAIN TUMORS and he then turns to you and says:
"While in Med School I missed the lecture on Brain Diseases...and I suggest that you get a SIMPLE CHEST X-Ray to treat this in your head ... cuz after all everyone knows that there is only a small amount of radiation involved and it goes by so fast & painless you won't feel a thing!
Now here's my bill for $125 for your appointment + X-Ray---Good Day!"
IS your Attorney informed/researche/documented/and Qualified to make the BS assertion?
I think the odds are 99% certain that he either isn't, hasn't nor probably ever will be professionally familiar with the structuring and BENEFITS of satisfying your Land Trust requests and needs!
Go get the valuable opinion of a Lawyer whose practice is already familiar with and actively using Land Trusts for their clients!
Don't waste time nor accept the spurious/biased/non-qualifed ramblings of a 'defensive' Atty-wannabe-Relitter!
Much Success,
Derrick Ali
I have had the same effect with a couple Real Estate Lawyers. It's a shame. They won't admit when they don't know something. I would suggest getting Bill Bronchicks course on Land Trusts.
It is well worth it to put it in your RE library. I have personally purchased this course myself and have written a review on it as well.
http://www.thecreativeinvestor.com/modules.php?name=Reviews&rop=showcontent&id=3
OK in regards to the LandTrust you should all be checking out Derrick Ali's posts and check out Bill Gatten's site. Almost any question you could have regarding the Land Trust as well as all contracts and forms are available there. The web address is www.landtrust.net. When you get there make sure you read all the topics on the discussion board because there is some invaluable information there. Also Bill has posted some very informative articles on this site. Don't be shy about posting questions either because Bill is one of the most helpfull people I have run across in all of my contacts with people in this business. Hope you all get the answers you seek from these sites.
Hi,
I was just reading through your question and I was wondering if you ever figured out the answer. What do you think of land trusts finally?