Real Estate Investors Use Of Land Trusts

Despite a disruption in our e-mail provider, I have been reviewing and researching the information I have on trusts as I add that section and resources to support it to the Real Estate Investor Wiki for Real Estate Investor Bronze Members.

Right now, I am reviewing Land Trusts and the how and why real estate investors use them in their own real estate investing businesses. While my strength is in marketing and systems, I have used trusts in our investing business, but I’ve never studied them as in depth as I am now nor have I understood them nearly as well.

While you are eagerly awaiting the addition of the trust forms and resources that I will be adding, I’d like to share with you some very basic information about some of the reasons you might want to talk to the legal side of your Dream Team.

First, land trusts, when used correctly can give you a level of privacy in your real estate transactions. Do your neighbors really need to know you own 84 rental rental properties in town? I don’t think so. Properly structuring your ownership can keep your personal name off public record.

Second, this privacy can also reduce frivolous lawsuits. Imagine being a middle car in a long line of cars involved with a traffic accident as attorneys look up the names of all involved to see who has deep pockets and can pay (even if it was not your fault). Having no properties in your name during that search could keep you from being the one they go after.

Third, ease of transfer of ownership. Transferring the beneficial interest of a trust is usually far easier than transferring ownership of a property. Using land trusts as you include or exclude new family members as beneficiaries of the profits of the property can eliminate complicated and costly paperwork.

So, I’d strongly recommend you sit down with your legal adviser and ask them how using land trusts in your personal real estate business could be of benefit.

Until my next post,

James

P.S. Upgrade to our Real Estate Investor Bronze Membership now.

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