Doc, that’s just it, you don’t get it. You have the same problem every other NARS/PAC/whatever you’re calling it today groupie that I’ve known has had. You can’t, or won’t, admit anything about what you are actually doing. It’s always the greatest thing since sliced bread, and it’s always legally and morally right, no matter what.
Let’s review:
Once YOU place your property in a land trust. Key word: YOU. Does the law provide for an investor to coach a seller of a property (there is that word, sell) to have the seller place a property that is on the market to be sold into a landtrust? What exactly is the purpose of that forced landtrust (It wasn’t forced? Would you have taken possession of the now “personal property” if the seller refused your landtrust idea?) Answer: The purpose of the landtrust was for you, the investor, to take control of the property. If you don’t like the work sell, fine, don’t use it. Use transfer, assigning beneficial interest, whatever makes your heart feel better. However, the true purpose was for you to gain control over the property for your financial gain.
Hardly for the “asset protection” that you claim, and hardly the ethical deal that you claim since you can’t even admit to what you’re actually doing because landtrusts created for the intent of concealing a sale (or transfer of ownership RIGHTS) is still fraud, even in the eyes of the laws that created land trusts.
You say that you ALWAYS notify the lender of the landtrust. Do YOU notify them, or do you coach the seller on how to notify them? Do you inform the lender that you will be transferring ownership rights not only to you, but also to a third party? Probably not, because it’s the transfer of ownership rights that invokes the DOS. Remember how fond you are of letting people know that about lease/options?
But I forgot. You transfer those rights to the third party by a “unrecorded legal document.” Exactly why, if it’s a legal document, does it have to remain unrecorded? Because if it’s recorded, then your have problems with the legality of your land trust.
If you want to site laws and guidelines and such, how about the NC Attorney General’s crusade to stop unlawful uses of land trusts? Or the fact that the NC house bill 725 concerning ‘creative investment’ was brought about primarily because investors were using landtrusts to “conceal” their subject to transactions?
Doc, I don’t have a problem with the legal use of land trusts. Legally, if you want to buy a property and then put it into a trust, be my guest.
What I have a problem with is you saying that it’s perfectly legal for the seller (dang, there’s that word, sell again) to put their property into a landtrust (which they wouldn’t have done or even have known about without the express coaching of the investor/buyer), then transfer their ownership rights over to you. And you try to justify that by saying it’s not a sale!
And the sad part is is that you DON’T get it. You’ll always hide behind “it’s legal” so it’s moral and ethical. Even though I question the legality of your particular form of landtrusts, sometimes being “legal” doesn’t make it moral or ethical. Anytime that you have to find ways to hide what you are doing, whether you’re legally hiding it or not, you have to question the moral and ethical impact.
Raj