I sent you an email and offered to discuss any questions you had privately but you choose to post misstatements. I even included a link to client testimonials and a list of companies for whom I have consulted.
“What some of you ‘consultants’ have done is to twist this into a bait and switch scheme…offering some ‘free’ assistance up front in order to sell your goods or services at a later date”
I INVEST IN PROPERTIES USING THE TRUST. I ACQUIRE AND MANAGE PROPERTIES USING THE TRUST. I DON’T SELL TRUSTS. THE PRICES ON MY WEBSITE ARE THOSE OF NARS SO MY CLIENTS KNOW WHAT THE TRUST WILL COST.
“take your website off of your signature block-the first thing that pops up when you go there is that your a land trust consultant, i.e. your a land trust salesman.”
A CONSULTANT EDUCATES, A SALESMAN SELLS. MY WEBSITE IS FOR EDUCATIONAL PURPOSES FOR THOSE WITH WHOM I AM DOING BUSINESS AND FOR THOSE WHO LIKE TO LEARN. DON’T LIKE IT? DON’T CLICK IT.
People post about topics they know something about. Cash posts about subject 2, others about mortgages or lease options or whatever. I also buy subject 2 using a slightly different method. How will people learn if we post about topics we know nothing about?
The PhD represents many years of hard work and study. I am happy you read all of my posts, many of which were direct responses to questions about land trusts. Perhaps you have learned something.
Anyone thinking of using a Trust to convey real estate needs to be careful and check with the legality in their state. In Michigan it is legal to set up a trust to hold property. The problem comes in when you assign the beneficial interest. Such as creating for a seller you are buying from a land trust, setting up a trustee that you know, and then having the seller assign their beneficiary interest to you as a means of conveying title. As it has been explained by an attorney to me, if done in this way, and the seller ever gets sour grapes about the deal and contests it, the courts may not recognize it as a legal conveyance. If you have in turn sold the property to another party you would be guilty of a fraudulent conveyance.
It would be hard to give clear title to your buyer, if you do not also have it from your seller.
It is entirely another matter to buy a property in your name or Corporate entity’s name and then put into a trust to shield from litigious eyes. This way you can have several properties in fifteen different cousins or lawyer’s names as trustee, so you don’t appear rich. Although to me since your name or corporate name would appear on every chain of title I think that someone would figure it out if they were looking to sue.
The best reason that I can figure to even use a trust is for estate planning purposes and to avoid probate, or protecting your children and providing for them.
But this is only what two lawyers and several in state investors explained to me as I was looking to do what a cousin of mine does in New York state with his investments. Different states different laws.
The way you describe the trust would be illegal. When we do the Trust, it is the Seller’s. Here is the very important distinction: He does not assign his beneficial interest so the property may be transferred. He retains a beneficial interest until he has been paid 100% of his equity and his mortgage has been retired. This is a beneficiary-directed trust and the Seller remains a beneficiary until bought out. His property is never at risk.
Our NARS Trustee is always the same non-profit corporation which eliminates any possibility of hanky panky. There have been others who used land trusts who made themselves or a friend trustee and performed illegal acts.
Trusts are legal in all states under Federal law. Our attorneys review and approve ALL trusts before they are signed.
If the best reason you can think of to use a trust is for estate planning, you have missed the boat. I apologize for the length, but here are 41 reasons to use a trust.
Transfer full ownership, including tax benefits without title transfer to the buyer
Acquire (or sell) property of all types safely without cash or credit qualifying or title transfer
Shield one’s property from creditor claims or judgments, including IRS liens
Sell (or trade) income tax benefits to tenants in order to leverage higher rents while greatly reducing the tenant’s after-tax rental costs
Take or allow loan-payment take over without a Due-on-Sale Clause compromise
Transfer real estate with one brief document, without escrow, title or lender involvement
Structure equity-shares and subject-to’s safely and effectively without title transfer
Structure lease options without potential for an Equity Claim to forestall or thwart eviction
Structure creative financing safely without threat of untoward or illegal actions by either party
Put sellers at ease who would never trust creative financing or investors otherwise
Structure partnerships without cost or standard paper work or income tax reporting obligations
Hide real property ownership from ALL prying eyes.
Avoid reassessment and property tax increases when transferring RE ownership
Avoid reconveyance (transfer) fees when transferring RE ownership
Convert realty to personalty, while still qualifying for 1031 Real Estate Tax LIKE-KIND Tax Deferred Exchange exemption
Avoid real property dealer status when acquiring numerous properties
Delay Capital Gains tax on a sale for years while leaving IRC Sec. 1031 exchange benefits fully in place
Structure residential leases with full income tax benefits to the tenant
Structure safe Lease Options with full income tax benefits to the tenant
Maintain complete privacy and anonymity of ownership with all RE holdings
Avoid a property’s involvement in Probate upon the death of the property owner
Maintain maximum simplicity of multiple property ownership (only one party signs all documents irrespective of the number of beneficiaries)
Eliminate dissention and disagreements among participants
Avoid public disclosure of acquisition costs and sales prices
Avoid the threat of partition by a dissident member during a dissolution of a partnership or a marriage
Avoid the necessity of obtaining new title insurance when ownership is transferred
Avoid or circumvent many restrictive Real Estate Brokerage Laws
Eliminate RE related threats of spousal claims and sabotage in marital disputes
Acquire foreclosed-upon properties with simplicity, without bank involvement
Avoid seasoning issues and double-escrows with Flips and Assignments
Condominiumize small apartment buildings (1-10 units) without refurbishment, extra expense or special permits
Structure time-shares, simply and safely—among the trust’s beneficiaries
Handle foreclosure-bailouts and acquisitions without violation of Civil Code Regs. (i.e. §§1695 and 2045)
Make BIG money fast and safely with tenant/buyers who may have minimal cash and poor credit
Effectively and comfortably manage out-of-area or out-of state income property without management, maintenance, negative cash flow or personal involvement
Acquire or sell over-encumbered and over-leveraged property for big profits
Hold ownership in, and live in, your home for years and still qualify for 1st-time homebuyer loan
Sail through lightening-fast closings with or without Escrow
Enhance your credit strength and financial leverage by not showing an income property inventory on the mortgage application (trusts show under stocks and bonds)
Acquire and hold your beneficiary interest in a Self Directed Roth IRA and avoid income tax on massive gains forever.
Will you two babies please shut up, it’s getting hard to follow the thread with all of the bickering and nonsense. Email will work just fine to discuss your problems. Thanks.
Thanks to everyone that has posted helpful info so far, hopefully this thread will continue on with more good info.
what you are saying then is you do not own it when you buy it with a pac trust. Are you therefore controlling it for the beneficiary? That would make you the trustee. But if you are not the trustee, or the beneficiary, what right do you have to profit from some property, either by taking physical possession of it, or selling it. Which it seems to me if you are the Beneficiary of a trust and you no longer occupy the premises and someone else is profiting from it, it still amounts to a transfer of beneficial interest.
The deep legal understanding of the convolutions in your PAC Trust confounds me. I would think I would have to be a Philadelphia Lawyer with New York Mob connections to comprehend the wiles of this trust thing.
If you are not the trustee, not the beneficiary, not even the assigned beneficiary, how do you come to take control and ownership of a real estate property.
Trusts may be legal in all 50 states. But I think the uses to which some people put them may not be. And that is the point of my lawyer.
Framer35. You said, “If you are not the trustee, not THE beneficiary (YOU ARE “A” BENEFICIARY), not even the assigned beneficiary, how do you come to take control and ownership of a real estate property?”
Here’s an example: The Trustee owns the Property and manages it for the Trust. The Seller is a beneficiary and appoints you as one as a Beneficiary as well. You then locate a Resident Beneficiary/Tenant who lives in the property under a triple net lease and takes full responsibility for payments, maintenance and repairs. The Investor (you) has no legal responsibility at all.
At the end of the lease period, the RB has first right of refusal to purchase at FMV. If he decides to purchase, the Seller’s mortgage is paid off and he gets all his equity BEFORE A TRANSFER OF TITLE TO THE PROPERTY TAKES PLACE. You as the investor and a Beneficiary get your cut according to the percentage of beneficiary interest, and the Trustee grant deeds the property to the new owner. It is really very simple.
One more item. This illustrates the difference between the words “a” and “the”. Bill Gatten demonstrated this significant difference by asking, “Would you rather be A man who sleeps with your wife, or THE man?”