I WAS TOLD THAT A LAND TRUSTS EXCEEDS ALL THE ENTITIES AS FAR AS ASSET PROTECTION IS THIS TRUE?
no.
They are different strategies to the same end. They each have advantages and disadvantages, making neither one the “ideal” solution in all cases. You should evaluate your specific needs and goals to decide which is best for you.
i second that mc!
One thing they are great for is taking property out of your name…
In other words, if someone wants to find out what all you own, it is very easy in today’s world… Even with an LLC… But a Land Trust, you could have a trustee and you name would not appear in the public records… ALSO, if you own a rental property in your name and get a judgement against you it goes on your person credit report… If it was in a land trust, the judgement will NOT show up on your credit report!
Land Trust if you can!
you’ll never really get definitive answers unless you really go out there and try and purchase an investment property using the land trust.
discussing this with a seller and having them agree to it will require you to have your ducks in order. you’ll need a reliable third party as Trustee to manage it. they have to be a nonprofit organization if you want to assure you will receive the greatest protections.
this subject has been posted on AT GREAT LENGTHS on this site.
to me, the most realistic way for someone who’s never done it to become familiar with it is to actually piggy back on someone else’s deal (mentor) and watch how they do the entire process.
use who they use - attorneys, trust management companies, title companies, etc.
i’ve never found anyone in New York - had a name, but no results in terms of contacting that person. it’s not easy. if you focus your mind on doing it though and make it a reality for yourself - as in, “i’m going to to do this” - chances are - you’ll find a way.
not the easiest of investment vehicles.
i want to comment a little further here on this.
to me, trying to understand land trusts, as a noob -
IS A COMPLETE WASTE OF YOUR TIME.
don’t get all wrapped up in trying to figure that out - learn the basics of land, real estate, real property, personal property, contracts, negotiations, market trends, etc.
wasting your time diving into figuring out land trusts is…well i said it already - a total waste of time.
quite frankly, i think it’s ridiculous. it’s like an astronaut trying to figure out what it’s like on the moon…when he’s…“a twinkle in his daddy’s eye.”
you’re not ready for that - learn to crawl first, before you walk.
I say get one property first even if it has to be in your name (unless you have a lot to lose) and then if you continue investing, start learning about land trusts and LLCs and how they can protect you.
Land trusts do NOT provide asset protection, they only provide privacy. You do not need a non-profit as part of a land trust - they are totally unrelated. Typically, the beneficial interest (real owner) is your LLC. The LLC is the entity that provides asset protection. Finally, you need insurance as the final line of defense.
As you can see, this is a complicated issue and there is a LOT of bad info out there. You would be well advised to buy a book or course on this subject if you plan to use land trusts.
Good luck,
Mike
I have been doing a good amount of research on this matter and actually speaking to one attorney who was clueless and another who is getting back to me about land trusts…What I did find was an online service that sells complete land trust/Nevada LLC package for $2200 complete…My next dilemma was who’s name would I put on the land trust.Being that I trust my accountant and lawyer I wasn’t sure if they would be comfortable having their names on the trust…Even though as I understand it the person who is on the land trust has no ownership rights to the actual land…The service package also for a one time fee of $300 will be the face name on the land trust and naturally the real homeowner is the owner of the LLC formed as the beneficiary to the trust…I happen to think the land trust is an excellent idea for those who want a better amount of privacy…A simple LLC is not nearly enough protection for me and I have umbrella policies up the wazoo already…Unless you have been invovled in a real lawsuit in a real court (supreme) you will never know how it feels to realize that your assets are exposed and can be in jeopardy…Keep in mind once an order to show cause is brought on you it’s to late to move any assets…Anything you try and move will be considered an illegal conveyance and will be quickly reversed if the ruling goes against you…My point is if land trusts/Nevada LLC’s provide the privacy/disguise I firmly believe they do then the few dollars extra are very much worth it…There is no worse feeling than being hit with an order to show cause,trust me on that…
What I would like to know is this…After I (my real name) buys the property do I simply transfer the property into the land trust?..I have read that some are afraid of transferring property into an LLC right after purchase because of certain guidelines and fear the bank/mortgage holder will foreclose or cancel the note,but does the land trust fall under the same scenario…Or because it’s a trust it’s looked upon differently?..I would love an answer to that…
ok everyone I found the answer…I’m not looking very hard…It’s right on the website that sells these land trust packages…I will cut and paste the Q&A below…
QUESTION: What about my mortgage lender?
ANSWER: The mortgage lender should not invoke the “due on sale” clause found in most mortgage contracts either as you are already on the mortgage and therefore you will still be held liable as the personal guarantor for the debt. Lenders tend to be agreeable to this process because in the paperwork we provide, you will sign a notarized contract between you and your corporation stating that you are assigning all your rights to future equity and income but that you shall remain on the mortgage as the sole “borrower of record”. Once the process outlined in our manual titled “Transferring Titled Assets To Your Corporation” has been completed, your corporation will be paying the mortgage payments and not you. Naturally, these payments are a tax “write off” for the corporation and when done correctly, not a taxable event for you.
RookieNYC,
Personally, I would not spend $2200 to set up a land trust. I have several of them and I do them right from my computer. It takes a total of a half hour to do the whole thing!
What I would recommend is to buy Pat Tarr’s “Armour and Camoflage” course. This is a very comprehensive course on setting up land trusts and includes ALL of the documents you need. Additionally, and probably more importantly, it has all the education you need on land trusts and LLCs and how to properly set up a complete asset protection program. It is one of only two expensive courses that I have purchased and I think it was worth every penny. (I believe that it is about $800). Try a Google search and if you can’t find it , send me an e-mail and I’ll find her info for you. With the course, you won’t need the expensive $2,200 deal.
Mike
I forgot one other thing. You do NOT want to buy the property in your name and then transfer it to your land trust. Buy it in the name of the land trust and keep your name out of the public records.
Mike
Mike ,
Thank you yet another time for your help…I will do just that… 
Sounds like the “Whiz” playing “who’s your daddy” again…
Keith