Title Of Land Trust

When using a Land Trust, do you call it :

ABC Trust
ASC Land Trust
ABC Living Trust

or is there a difference between a land Trust and Living Trust confused

Comments(19)

  • DerrickAli22nd January, 2004

    WanttoKnow:

    As usual Our Resident Legal Beagle --JohnMerchant IS K-REKT!

    I personally name my own trusts after the ADDRESS ...

    Example --the "123 Main Street Trust"


    ESuccess:

    You can do a google or cut out the fluff and VISIT www.LandTrust.net (Bill Gatten's Website)

    That's my Favorite stomping ground for info DIRECTLY related to CREATIVE RE Investing through 3rd Party co-Beneficiary Land Trusts!

    Hope this helps!

    Derrick Ali

  • JohnMerchant10th January, 2004

    There is no such thing as "land trust", as separate legal entities, and so-called are just trusts used to buy,sell, hold RE.

    It could be named anything as long as it's a wtitten trust agreement with trustee, benefiiciary & a "res" (something it owns and manages-without a res, a trust is just an empty shell, like an empty box).

  • InActive_Account10th January, 2004

    Where can one gain the most beneficial information on a trust and how to set one up and manage it?

  • hibby7610th January, 2004

    A land trust does nothing more than hold the title.

    As for what to call your trust, It depends on the deal.

    If your buying a home from bob smith sub. to, then you're using a trust to hide the sale. I'd therefore call it the "bob smith land trust." (Not living trust, not Just trust....land trust).

    land trusts ensure privacy, therefore In any other deal I'd make sure to call it something that can't be associated with you. Some people use random names. Other use the address of the property. Doesn't really matter. You can have some fun with it if you'd like![ Edited by hibby76 on Date 01/10/2004 ]

  • wanttoknow10th January, 2004

    Thanks!!! I got it

  • zenith19122nd January, 2004

    But what would you name your own land trust? If you were using it transfer title into your LLC?

    I definitly wouldn't want to use my own name for reasons of anonimity.

    Could I just use any name? Would it even matter? What are the implications for insurance and when it comes time to sell?



    Quote:
    On 2004-01-10 12:35, hibby76 wrote:
    A land trust does nothing more than hold the title.

    As for what to call your trust, It depends on the deal.

    If your buying a home from bob smith sub. to, then you're using a trust to hide the sale. I'd therefore call it the "bob smith land trust." (Not living trust, not Just trust....land trust).

    land trusts ensure privacy, therefore In any other deal I'd make sure to call it something that can't be associated with you. Some people use random names. Other use the address of the property. Doesn't really matter. You can have some fun with it if you'd like!

    <font size=-1>[ Edited by hibby76 on Date 01/10/2004 ]</font>

  • JohnMerchant22nd January, 2004

    Since the trust is only a pvt agreement between you & the trustee (your lawyer, buddy, banker, married daughter, etc.?)
    you can truly name it anything...like Dallas RE Trust, Smith St. Trust, etc....limited only by your imagination.

    Only name I wouldn't recommend is your own, so nobody looking at public records could possibly connect it with you from the title to any recorded doc.

    If I'm doing an asset search to see what
    Dan Wilson Jr. owns, if I don't see his name, I have nowhere else to look, and although he might own 1000 properties in trust names, I wouldn't know that.

    Insurance...just tell your agent what you've done, and you need insurance on whatever RE is in that trust. He/she will show you how. But since insurance isn't public, it really wouldn't matter how ins. co. has it on its books.

    Since a trust is a tax passthrough, it'll issue a 1099 at year's end so its beneficiaries can pay their own tax on their pro-rata part of it.

    I've opened a number of trust bank accounts by giving them copy of the trust, my SS #, etc.

  • omega122nd January, 2004

    John,

    What is the purpose of bank trust account. Account is not a public information so the only benefit I ca at the moment see is when you let's say write the checks, recipient do not know who owns the account or for argument sake property in trust which owes the account. Would this be all or you can add up something to it?

    I also wanted to ask what are the major differences between the trust forms?

  • hibby7622nd January, 2004

    I like generic names

    B. Smith land trust
    T Anderson Land Trust

    as has been said, you can use the address
    54 Pine Street Land Trust

    Or the property name
    Pine View Land Trust

    Or you can name it after your favorite TV show
    A-Team land trust

    Or your favorite band
    Blink-182 Land Trust

    Or your favorite color
    Lavender land trust

    Or your child's favorite toy
    Tickle Me Elmo Land Trust

    Or after your favorite car
    Ferrari Land Trust

    Or after your favorite food
    Maccaroni and Cheeze Land Trust

    Or after your favorite website
    TCI Land Trust

    Or after your favorite toy as a kid
    Barbie Dreamhouse Land Trust

    Or you can taunt your neighbor with it
    George Smith's wife is fat Land Trust

    Or make it look like a foreign Entity
    Nasau Bahama's Land trust

    Or like something you don't want to sue
    Johnson, Anderson, & Rodriguez Law Firm Land Trust

    Or like something you'll feel guilty for suing:
    Children's Cancer Fund Land Trust

    Something that's hard to remember:
    La Santa Vaca con tres patas del Mar Azul Land Trust

    Do you get my drift???

    Who will see the name of your trust:
    Anyone who looks up the property owner
    Anyone who sends you a tax notice
    Anyone at the title company when you buy and sell.
    you lender

    the bottom line...................
    If you're avoiding the DOS clause, make it look like the sellers trust (his name is bob smith, call it the bob smith land trust). In any other situation, call it whatever the heck you want to.

  • InActive_Account22nd January, 2004

    DerrickAli

    Thanks for the reference

  • gtowns22nd January, 2004

    Derrick -

    Thanks for droppin' the knowledge!

    Two questions for you:
    Does it make sense to create a land trust as a puchasing vehicle if I'm flipping properties quickly? Don't get me wrong - I understand the benefits, but it seems like you're advocating forming a trust for most if not all of your property purchases. In theory at the end of the tax year wouldn't you have to account for a lot of differnt trusts?
    Gordon

  • jeff1200223rd January, 2004

    when you sell the property, the trust is no longer funded, so disolve the trust. Unless you used it by passing the beneficial interest to your buyer. I don't sell that way, but some do I'm sure.

  • gtowns23rd January, 2004

    Thanks...yeah I guess that makes sense.

    Let me ask you though...
    Let's say you flip 9 properties during the year. And let's say you use a separate trust to purchase each property. When you sell a property, would you have the check (from the sale) written to the trust? And if so, would you pass the proceeds on from the trust to another entity (LLC or S-Corp.) followed by a dissolution of the trust?

  • xvjim24th January, 2004

    OK, I'm sorry for asking for the basics here but: could someone who has setup a land trust provide a play by play on how to create one? Is there a specific legal document which is required? What MUST be on the doc? Must it be recorded into/through a government office and if so which/where? You may email me directly if you would like.
    Thanks a ton...........

  • timerwin24th January, 2004

    Anyone familiar with Land Trusts or Trusts for property holding in Nevada? If so, do you know of any other documentation or recordings that need to occur other than declaring the trustee(s), beneficiary(ies), consideration, and terms at the time the trustor deeds the property into the trust? My research does not show a need for any other actions, but I wanted some reassurance.
    [addsig]

  • ARTEMIS525th January, 2004

    Wondering if you ever received a reply to your request for a blow by blow description of the process of using land trusts? If so, I would appreciate it if you would share it.

    Thanks for your attention to my request.........Diana
    **Please See My Profile**

  • gtrkev25th January, 2004

    For some basic info on Land Trusts, check out this website:

    www warda net

    it pertains to Florida Land Trusts. Good info.[ Edited by gtrkev on Date 01/25/2004 ]

  • DerrickAli26th January, 2004

    GORDON:

    Are you wanting to flip with the use of a trust or are you looking for cash-flow etc.

    To flip... is to locate a property at one price and sell it to a buyer for hopefully a little higher price. This usually requires that you finance the property first into your own name and take title, only to immediately sell it to another.

    In my example below I have a purchase for $30,000 or so less than say the property is worth.

    Your goal would be to sell it for a $10,000 to $20,000 quick profit.

    The way the NEW HUD 90 or 180 Day Laws work requires Me to take title either by financing the property for that seasoning period or paying all cash + show receipts for improvements before I can resell it.

    And You can’t line up a buyer with a seller unless you are a licensed RE Broker or Agent. So you can forget about using a "straw" buyer as well.

    The best solution I find around this ‘Seasoning issue’ and also to avoid taking title Double-Closing costs, etc.

    The answer for ACHIEVING (The SAME) PROFITABLE RESULTS…as FLIPPING is to Use a Simple Trust. I do this on a regular basis.

    We all can appreciate a ‘CA$H NOW’ Solution instead of cash flow for the next 3-5 years.

    Here is how it works using a Land Trust:

    1. YOU have the Seller to set up a Simple Land Trust naming you a co-beneficiary and/or the trustee (Power of Atty + a Silent Beneficiary Agreement).

    2. You then have the beneficiaries direct the trustee (perhaps yourself) to sell the property and distribute the proceeds to all the beneficiaries according to your deal.

    Example:
    Property Value: $160,000
    Existing Loan: $110,000
    Offer to Seller: $130,000
    Sale Price to Your Buyer: $150,000

    Loan is paid, seller gets $20,000, you get $20,000 and new buyer gets house + $10K in Equity. It's that simple.

    No New Bank Loan (on your part)
    No Down Payment
    No Bank Qualifying
    No Monthly Payments (Maybe even Positive Cash Flow)
    Etc.

    Got It Yet???

    There is a recent post on TCI called:

    'Taking title within a Land Trust?'

    Just go to FORUMS and use the SEARCH Feature entering the above into the blank field.

    If You need any more assistance then PM me.

    I hope this helps!

    Derrick Ali

  • gtowns27th January, 2004

    Derrick Thanks for the info.!

    When it comes to Land Trusts, you really know your stuff!

Add Comment

Login To Comment