Land Trust ???

[skyguyman]

Hi,
Could someone explain to me what a land trust is (purpose, use, cost, etc)?  I would appreciate it.  Thanks, Joe.

[tedjr]

Howdy Joe

Land trusts are used for several reasons. A living trust can be formed where the property if deed to the trust for the benefit of heirs or others where control is still there until the demise of the grantors. Also a  land trust can be set up without the living will aspect for minors etc or where the beneficary may be mintally unstable.

The land trust  used by most investors is purely to hide the ownership of the property from the general public. If you are an attorney looking for deep pockets to sue or someone who owns real property it is harder to find  property I might own if it is hidden it trusts and partnerships etc. Anyone can pull the deed records using you name and find all you own unless you hide it.  Something I should have done myself years ago to protect some of my property. It does not limit your liability especially on the mortgage but just helps hide the ownership.

The costs to set up vary. You can do it yourself for a few dollars but should use an attorney at a cost of $300 or so. I hope this helps some.  Hopefully some other members can add some more insight.

[David Alexander]

A land Trust is just a way of holding title to a piece of property...

Think of it like this....

A burgular who steals car stereo's is walking through a parking lot... looking for car stereo's in vehicles...

He isnt going to bother the cars that have tinted windows.... He's not certian anything is there.

He'll go where the money is....

Land trusts offer no real proetection other anonmynity....

Land trusts just shield ownership...

David Alexander

[ARM]

What is a better way to hold title to investment properties?   A land trust, or in some sort of LLC or other corporate entity?  Also, is it best to set up a separate entity for each property?

Thank you,
ARM

[Bud Branstetter]

Don't let the entity get in the way of going out there to make a good deal.  Hold title using the land trust.  The beneficiary can be any entity(corp, LLC, LP, personal) depending on the goal.  For rehabs and flips the corp or LLC taxed as a corp. is what is generally used.  The idea is to separate short term profit centers from long term holdings.  Would I want a 40 unit apartment complex with a pool in a different entity than some notes or a SFR, YES.
If I had 3 SF rent houses is it worth forming 3 separate LLC's. Not in Texas.

A protection that a properly set up land trust does give you is that judgements and liens do not automaticly attach to each property.  A failing of an LLC is that everything in it is vulnerable if you get sued over any one property.

[lotsofquestions]

I've heard of purchasing property through a Roth IRA. Can someone elaborate in this (i.e. benefits, etc.)

[pe_x]

How does one purchases using Land Trust?  Can somebody show an example how its done?  I am not sure how does it hide owner.  These days County records can be searched in some many ways using the County OPR database that I doubt it can remain hidden.

Any input will be greatly appreciated.   TIA.

Ray

[Bill Gatten]

David Alexander...No protection other than anonymity?  What?? David, I though I taught you better than that.  

Check this one out...

http://www.reiclub.com/forums/index.php?board=27;action=display;threadid=1998

Bill Gatten

[pe_x]

Can somebody point to where can I find the following article:

A Device for Texas Land Development: The Illinois Land Trust, 10 Houston L.Rev. 692, 1973

Thanks in advance....

Ray

[Purge]

I am going through a mortgage elimination process and yesterday I received my Family Trust in a bound volume. The trust has been set up to protect me from my lender and anyone who wishes to jump in front of my car. Now that my lender has defaulted on the Administrative Procedure the Trust will put a lien on the property in first position. Now no one can get access to the property without satisfying the lien. I don’t know all the ins-and-outs but I will never live without a trust.  

If anyone knows of any books on the subject please let me know.