Land Trusts?
I have read many discussions on this website (and others) about land trusts. One site spoke about having members, etc. I don't think I need the uncut version, but what is a good website for learning about land trusts? Also, those of you who have used them, how many pieces of paper are used and how is it recorded? Do you need 10-15 members to form one? I just need specifics because I am a little confused.
-Newbie
MadMax:
Nice to meet you!
First let me ask you ---
What is it that you intend to achieve by using a land trust?
In the state of Louisiana your use of land trust does not afford you privacy nor tax deferrment benefits etc.
so some aspects of creative investing (as far as LA) are not advantageous.
So please tell us more what you'd like to do?
Hope this helps!
Derrick Ali :-D
I suspect that you are really talking about a Limited Liability Company (LLC) and not a land trust.
The LLC provides its members some measure of asset protection by limiting their liability exposure only to the extent of the assets owned by the LLC.
Visit the Legal Forum to read quite a few topics on this subject.
Do any of you know if in the State of NY a land trust would be advantagous in addition to an LLC?
I am already in the process of receiving paperwork on my LLC, so I understand about tax advantages. My concern really involved privacy and the notorious DOS clause. Many states allow Land Trusts for protection, but in LA that must not be the case. It all boils down to the DOS clause and what the other alternatives may be "best interest" in LA. Can someone enlighten me?
The state of LA is unique in several respects. Your real estate laws are derived from France (the Napoleonic Code perhaps) whereas all the other states have their state laws rooted in English Common Law.
Because of the unique character of your state's real estate laws, I suggest you confer with a local attorney on this issue.
Contrary to what you have heard or believe, I maintain that a land trust does not provide any asset protection, only some measure of anonymity.
I neede to no, how does setting up a land trust for realestate. I have heard people say they have set up a land trust for properties they have purschased from people, and put the properties in a land trust until they have a buyer or someone to lease the propertie for 2-3 years before they sell it to them, where they have equity in the propertie and the buyer makes money as well. Help me if I'm wrong thanks James in Chicago ILL.
Kool J:
My homeboy from 53RD St, The POINT (55TH & the Lakefront), the Univ. of Chgo... Blackstone Artwerks Gallery, GIORDANOS Pizzeria ---
OH How I miss my fun in the windy City and those Kenwood Academy days....
OK! OK!! ENUFF with the REMINISCING!!!
You are K-rekt about the land trust use to obtain ownership interest without title conveyance plus turning around and re-selling some of the % interest you acquire to a credit challenged Buyer whom can't Bank Qualify just yet!!!
BTW - Have you been to the CEDARS of LEBANON Reastuarant to eat yet???
I herd the food is SOOOO DELICIOUS ---You Have to BE CAREFUL NOT TO EAT YOUR FINGERS with IT!!!
Happy Investing!
Derrick Ali :-D[ Edited by DerrickAli on Date 05/12/2004 ]
Mr. Ali,
Nice to meet you also. 3 Quick questions.
Question 1: When you set up the trust, are you basically setting up a percentage interest in the trust with minimal money changing hands? Example: Preforeclosure. Homeowner wants out. comps, cma at 110k. mortgage currently 70k plus 4k in arrears (for argument's sake). monthly payment is $600. Trust has beneficiary (homeowner) at 10%, you at 90%. Bank agrees to give you some time to "deal." You sign 45 day non-exclusive right to purchase, give consideration (glue money) and you're off marketing for a buyer (RB). RB agrees to MAV of 110K, minus 9K for downstroke plus consulting fees. RB now has beneficial interest in home with no title change (quiet). RB brings in 9k, 4 for arrears and 5 for down payment/investor's consultation fee. He/she is now a beneficiary in trust for a stipulated amount of time.
Question 2: Do you just walk away and do it again, knowing you just "created" 30K on one deal and you have the paperwork to prove it?
Question 3: What, if anything, did it cost you to put this deal together, seeing that there were no visible closing costs, nothing but a deed recorded, and only the cost from the set up of trust out of pocket?
Correct any problems I may have created in this scenario, but I think I may be getting it.
MAX
:-D
Max:
You must have be on some Jedi Mind Control Etherlodes or sumtin???
To Answer your Q.s
#1 Yes---Very near to k-Rekt!!!
#2 Yes Thats the point of doing it the way that I do
and
#3 You may be over simplifying it a bit.
Set up of the trust and establishing a 'contingency fund' (2-3 mo.s PITI) to cover pymt coverage and/or possible eviction of the RB (tenant-buyer)
Total runs a little more than 2-4% of the property value.(MAX).
You've been studying somewhere huh???
Happy Investing!
Derrick Ali :-D
Mr. Ali,
2 more questions. Answer these and I'm over the top and ready to go.
Question 1: Is the trust actually paid for at inception - or can it be paid when terminated? Using same example as above: Original owner or investor pays for trust set up (Or for that case, can it be paid for by RB)?
Question 2: With neo at 45 days, does that not give you ample time to record memorandum of option, set up the trust (along with contigency money paid for by either of the 3 parties involved) and find a RB with enough CASH for a suitable front and back-end profit? I know I'm looking through rose-colored glasses here, but I'm sure you've done a few of these in your lifetime.
P.S. No JEDI Mindtricks, only a hungry newbie who's starting to think like an investor. 8-)
MAX Wrote---
Quote:Question 1: Is the trust actually paid for at inception - or can it be paid when terminated?
both...either The Seller/owner will need to first set up a SIMPLE Living trust
naming themselves as the sole beneficiaries.
THEN they SILENTLY assign YOU beneficial interest in the trust
(costs is about a coup[lle hundred or so)
Quote:Using same example as above: Original owner or investor pays for trust set up (Or for that case, can it be paid for by RB)?
RB Pays for the Equity holding trust (tm)needed for you to re-sell them your interest in the original Simple Living Trust.
Quote:Question 2: With neo at 45 days, does that not give you ample time to record memorandum of option, set up the trust (along with contigency money paid for by either of the 3 parties involved) YES and find a RB with enough CASH for a suitable front and back-end profit? YES - MAYBE???I know I'm looking through rose-colored glasses here, but I'm sure you've done a few of these in your lifetime.
Max you'll never know if you'll successfully find an RB to make your deal successful Unless you GET OUT THERE AND DO SOME DEALS!!!
RIGHT NOW OK???
Happy Investing!
Derrick Ali :-D
Quote:
On 2004-05-09 07:44, gsrgirlie wrote:
Do any of you know if in the State of NY a land trust would be advantagous in addition to an LLC?
NY simply says that a Land Trust may be used for any lawful purpose.
The only thing I use them for is to shield ownership. For asset protection, I hold the Beneficial Interest in an LLC.
Hope this helps!
[addsig]
Quote:
On 2004-05-09 07:44, gsrgirlie wrote:
Do any of you know if in the State of NY a land trust would be advantagous in addition to an LLC?
NY simply says that a Land Trust may be used for any lawful purpose.
The only thing I use them for is to shield ownership. For asset protection, I hold the Beneficial Interest in an LLC.
Hope this helps!
[addsig]
Quote:
On 2004-05-09 07:44, gsrgirlie wrote:
Do any of you know if in the State of NY a land trust would be advantagous in addition to an LLC?
NY simply says that a Land Trust may be used for any lawful purpose.
The only thing I use them for is to shield ownership. For asset protection, I hold the Beneficial Interest in an LLC.
Hope this helps!
[addsig]