Is It Honest To Use A Land Trust?
| I have been using Land Trusts for over 30 years, but every now and then someone will challenge me as to the purpose and "honesty" in using a Land Trust to hold title to real estate investments. Let's clear the air.|
Recently I was talking to a real estate investment club owner about speaking to his club regarding land trusts. He said, "We do not believe in using Land Trusts because they are dishonest." He then went on to explain how someone had come to his club and spoke about Land Trust and that led him to believe that the use of a Land Trust was for deception and taking advantage of people.
I told him that I was sorry that he had been misinformed about Land Trusts and that he should reconsider their use and benefits. I went on to review with the club owner why it is important to NOT have your name in the public records as owner of real property:
10 IMPORTANT Reasons To Use Land Trusts
1. A group of investors may be purchasing several properties for a special purpose and it may be that the desired result can be best accomplished if the objective is not made public.
2. Co-owners might desire that the interest of each beneficiary must be kept private.
3. An individual owner might not want to be hassled with inquiries regarding the property.
4. A real estate investor might not want his competitors to copy his acquisition techniques.
5. Real estate investors do not want their tenants to know they are the “owner” of the property (helps with day-to-day management and lease renewal negotiations).
6. Co-owners want to know that a lien or judgment or divorce of one owner will not affect the title to the property.
7. Out of state owners can avoid probate and other legal issues upon death-smooth transition of succession.
8. A group of heirs can inherit a property held in a land trust with ease of management (by the director) and no need for a partnership agreement and a partnership tax return
9. Co-operative housing corporations may elect to hold title to their land and buildings in a land trust. They could then issue beneficial share to their residents in place of stock certificates-simplifying control and record keeping.
10. When a Trustee of a Land Trust signs the mortgage (that gets recorded in the county court house records) the debt will not show on the borrower's credit report.
Land Trusts have been used by American citizens for over 100 years for good reasons. There are many legitimate reasons to use a Land Trust for privacy and asset protection. No one will protect your assets like YOU will. Learn all you can now because "old and cold" matters. Ever since 9/11 it gets harder every year to be private and protect your assets. Do it now! Don't delay!
|Randy Hughes has been a full time real estate investor since 1969 and has purchased over 200 houses. He has lived the life of having nothing and will not let that happen again. Randy's primary goal now is to teach others how to break the cycle of poverty. Randy teaches real estate investment courses throughout the United States. He has written Privacy and Asset Protection books as well as home study courses. Randy’s most popular publications are his Land Trust Made Simple home study courses and live seminars.|
Randy has written extensively for local and national real estate publications. He has taught real estate classes at the University of Illinois, Parkland College, and Elgin Community College. Randy has been a licensed Continuing Education Instructor for the Illinois Association of Realtors for 20 years. He also speaks to real estate investment clubs throughout the United States about the many benefits of using Land Trusts for privacy, asset protection, and profits.
Randy Hughes, teaches classes on how to protect your assets and how to become more private with your personal life. He also teaches land trust law, authors the only Land Trust Newsletter and Blog in the country, is the founder of the Land Trust University, and is an expert author for REIClub.com & EzineArticles.com Blog. Randy Hughes has also authored the free report "50 Reasons to Use a Land Trust" for real estate investors.
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without the express written permission of the Author and/or REIClub.com.
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