I know they don’t provide asset protection.
But, on my first rental, I’ve had so many conniving people ask me if I’m the owner of the property and then proceed to try to push me around, I was wondering if it would be worth it to do one land trust in the future for all properties, to hide that I’m the owner? How expensive is it to set up a land trust?
It wouldn’t be a land trust if you combined properties, but you can have 1 trust for owning all of your property. They aren’t that hard to set up if you know what you are doing. Just don’t rely on some kit if you have no experience.
Some states require the trustee to be on the deed. That doesn’t help with privacy, but you can always say the trust agreement doesn’t give you authority to deal with whatever it is they want. The trust document is private and they have no right to see it.
On a side note, trusts are good for estate planning purposes, especially if you become incapacitated. You can specify who can take over the property while you cannot and then you can take back control when you are ready.
Thanks BLL. As always you are generous with infomration on the subject.
On the other hand, you could learn to just say “no”.
If “no” is too hard, try, “probably not” or “I don’t think so”
If you really can’t say no, then say “Let me think about that for awhile.” Then you send them a quick written note saying “sorry, can’t do it”
Seriously, Buy and Hold, if you are a landlord, you need to have fair rules and enforce them evenly and firmly. Tenants can be like 3 year old kids, asking for everything they see, but not really expecting to get it. But they always think it is worth a try. You won’t hurt their feelings. They are used to having their unreasonable requests turned down.
yes, I am learning that as I go along. But I’m also exploring all options. And the land trust wouldn’t be only for this reason (if I decide to do it).
Just saw this post. Yes, land trusts do provide privacy by keeping YOUR name off of public record. Just remember, each property is to have a seperate land trust. It is not expensive to set up a land trust. You can probably find the forms on the internet but if you don’t trust that, (I wouldn’t but good luck) . to set up a land trust including a filled out version to know what goes where. After that, you can just dupe it over and over again. I use them and they’re so simple, I couldn’t believe it!
The privacy is very minimal, especially if your state requires the trustee to be listed in the public record. In any case discovery reveals everything needed, including any other trusts you have set up. They only keep nosy neighbors away.
Just saw this helpful thread on land trusts. BLL - Is there a particular site that lists whether a state requires the trustee of the Land Trust to be listed on the deed ? Looking at specifically CA.
I know of no web site that maintains such a list and I don’t invest in CA. To find out how CA does it, check out some property records where the owner is a trust. That will tell you if the trustee must be listed in the public record.
People are pushing you around? I assume you mean tenants
and if so then land trust won’t solve your problem. I’ve never
had a tenant ask anything about the property other than, “Can I move in?”
Remember, you’re the boss, they need you because they more
than likely have f&$d up credit. The only time someone asked
about the trust was a buyers agent who asked did the previous
owner pass away. I just put the monkey back on them with
questions, “Why do you want to know?”
In regards to land trust, you really need to a seperate land trust per property.
If you can setup one trust you can setup 1 million. If you want to
truly have some privacy plus asset protection setup a “Series LLC”
or a LLC per property.
I hope this helps and remember, you’re the man, never let someone talk down to you.