sub2 assignment

General Real Estate Investing
1

Some people have been taking deed to trust with the beni being their LLC or corp cutting out the assignment, so I’m taking a pole.
Tom

2

Hi
What I do is form a LLC in Nevada (I live in NY) as the trust, Make the seller the beneficiary. Than they assign the Assignment of Beneficial Interest over to my NY LLC, and then file the Warranty deed. (Only the seller name is on the deed so no one knows who owns the property) Since I’m very choosy on my sub2’s I spend the money to form a Land Trust LLC for each sub2. (I know it cost but better to spend a little now than loose a lot latter. Each deal MUST STAND on its Own

Good Luck
HouseHunter

3

Househunter, why do you use a Nevada LLC instead of New York? Is it just for tax reasons alone?

4

Piercing of the Corporate Veil does not happen in Nevada as it does other states.
Nevada courts have a history of case law protecting the “corporate veil”, making it the most difficult in the country to pierce.Nevada courts have allowed the piercing of a corporate veil once in the last 21 years, and that was due to fraud resulting in harm to a Nevada resident. The case was Rowland v. LePire, 99 Nev. 308, 662 P.2d 1332 (1983)

I use to have a niece in Connecticut act as my trustee but she tried to sell one of my sub2 house, what I do is take out a mechanic lien on all of my property,s for 3,500.00 this way when she/or anyone else tried to sell one of my houses I was notified and I removed her as a trustee. (never did tell my brother about that one) check out William Bronchich on Land Trust, also I follow part of a system from Jim Mitchell’s system of sub2 you can find him at http://www.rementors.com/index.shtml He puts the homes in his name and than has them assigned I think that is a bad move but he has done over 50 deals so who is to say.

HouseHunter

5

I have read alot of bronchicks material. Right now I use two Nebraska LLC’s (one as trustee, and one as Ben.) How much does it cost you to set up the Nevada?

6

Househunter,

Thanks for the mention.
However, this is not acurate.
The way I set mine up is to use someone as trustee, sometimes myself when selling quickly, to maintain control, and sometimes not.
The trust is then owned by an entity.
I’ve even set them up where I have co-trustees, naming someone else, then appointing myself co-TTE after the fact, in private.

And yes, I’ve done well over 50 deals, in fact as of now, a few hundred.
And still working to get more.

Take care,
Jim FL