acquisitions with land trusts

i have read a lot about trusts and am unable to grasp the concept. I understand that to purchase in short sales its advisable to put the property in a land trust to protect against the DOS clause, would it matter because its already in the foreclosure process? to purchase with a land trust, does that mean that you would have to take title to the property as yourself or entity then appoint a trustee? how would that protect again the dos clause if the borrower is of title when they title search it? would you leave the borrower as the trustee to show up on title, but you control the land trust? what is a beneficial trust then? some people say use a all inclusive trust which is a temporary ownership for x amount of days or an intervivos trust? how confusing…anybody knows how trusts REALLY work, i have found out a lot of people dont really know and assume. assuming will not pay the bills…haha. Ron legrand talks a little about it, but unclear still… CA here. Thanks for the advice! ;D

WOA!!Does anyone know how land trusts are used in acquisitons???, im sure some of you investors use it when purchasing right to protect yourself???

Bill does a good job at describing its use:

I’m not sure you need to setup a LT for a SS though. Unless I’m wrong it’s only used if there IS sufficient equity in the house to salvage. Upside downs don’t fit the bill. :stuck_out_tongue:

Land trust are used to hide assets from the public. You can use them on every deal. Again, it is use to hide your assets from the public.

Hope this helps.

thanks for the info. the question i have is how is one set up?
my understanding is this…
take title from seller to you/entity- have you/entity the beneficial trust and appoint a third party as trusee
keep seller has a small % of the beneficiary to show some sort of ownership?
a few things i dont understand… why appoint a third party as trustee? could that be me personally even though my llc is the benficiary, do i have to make the seller a % owner of the beneficial trust? does anyone understand the detailed process of the land trust or know good sources how to identify the differences…intervivos trust,living trust, all inclusive trust etc… thanks investors!

Whoa! Why are you giving the seller some %? What deal are you trying to get? Need info.
You should/can be the trustee with no problem.

hey joseph, im not giving anyone ownership, i just thought you had to involve the seller to protect against the dos clause, is there another way of doing it? i was told that you put the property into a trust and put you/entity as benenficiary and third party as trustee to take care of it. do you take title then put it in the trust, or you take title directly into the trust? who is good rep. for the trustee/third party?


Well, first I’d like to say I am not a lawyer. so to answer your question, take title direclty into the trust. Here is why. the purpose is for privacy. If you take it into your name first then the trust, you’ve defeated the privacy purpose. Once you take title in your name it is on record and anyone who types your name at the recorder’s office will see you have interest in the subject property.
Also, I wouldnt your name as being the trustee either. don’t know what state/city you are in but depending on the search method available at the recorders office, a person can still find you. As result, have an LLC or a lawyer or another trust be the trustee. Here an CA Los Angeles, the search method is by grantee/grantor.
Hope this helps.

hey joseph, im also fro so cali. la cnty, is the form i need to use a grant deed to trustee or which is equivilent cause i know other people speak of warranty deed to trustee but that doesnt apply in our state. i was looking through title and could not find the form to put sellers property into a trust that i would create, does it matter what the name of the trust is? should it be the name of the seller? so the trust owns the home, i own the trust/or my entity, the trustee is a third party ( is it because people can find out who the trustee is… does the trustee have any rights then or control their rights to transfer to someone else or is that sole decision of beneficiary? what incentive would a trustee have to take on a responsbility without any benefits?) thanks!

Okay Pillow,
Go to the real estate articles on this website. There look under asset protection. You’ll see articles on LLC and trust. Here is an article in that section that may help:

As far as a title search, you won’t find the land trust there. Name the trust anything you want. The refernced article above you give some insight. Just don’t put your name as part of the trust name. As far as forms, you might want to look or search the civil codes. I don’t know the exact number.
Or you can go to one of those online services and pay couple of hundred dollars to get one setup or get a lawyer.

Hope this helps.

hey joseph, thanks a lot for that article, after reviewing this for hours i can finally have a good understanding on how a trust operates. all the bits of information on here makes sense when put together, thank you again for your help on that. do you think putting personal property in land trusts are beneficial or living trusts? i have a principle residence right now and i want to put my principle residence in a cloud(trust) also because i have a pending arbritration hearing coming up next month and i dontwant them to know i own anything more than i do ya know? thanks joseph

great article, thanks for the link again!

Well, I don’t know exaclty your situation. But if you are currently in littigation and try to hide your assets, that MAYBE viewed as fraud and could mean jail time? Just my IMO. Again don’t know your situation. Again I am not a lawyer.