Land Trust
Can someone explain to me exactly how the Land Trust works. I am thinking of putting my own home along with a rental property I just purchased into a land trust (seperate of course). I spoke with an attorney who is also a Real Estate Broker and he informed me that the Land Trust was a bunch of BS. That I must be listening to those get rich books and tapes. Wanted to get some insight and positive feedback if there is any from savvy REI's. Any comments or suggetions would be very helpful.
Would love to, need to know what type of LD you are looking at.
What's an LD?
Second the motion.
Did you mean LT for Land Trust.
John $Cash$ Locke
Hi all, this is basically a ? rather than a comment. If you have a pre-foreclosure and put it in a LT, what happens if you're not able to assign the interest for $. and the foreclosur falls through. What are the consequences concerning the Trust?
Hey Gang,
I went to the IRS website and found this definition, in a document that listed Land Trusts as "Abusive Trust Tax Evasion Schemes - Special Types of Trusts." I can't post the URL on this site, but here is the specific quote about land trusts:
~~~~
Illinois Land Trust
In Illinois, and in five other states, legislation has been enacted that creates a special type of trust, commonly referred to as an "Illinois Land Trust". These trusts are designed to house real estate within a grantor trust and provide limited access to grantor or beneficiary information contained in the trust instrument or known to the trustee. Once a land trust is established, the ability to trace property transactions becomes limited as state law establishes the right of the trustee not to disclose the true owner of the property or those with a beneficial interest. The "land trust" has no special distinction in the Internal Revenue Code and would be a simple, complex, or grantor trust depending on the terms of the trust instrument. Filing requirements would depend on the type of trust.
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Perhaps a call to the IRS (1-800-829-1040) will help you determine if LT can be developed legitimately CA? PLease let me know what you learn if you call, ok?
Best,
Marlene
Not LD but LT. "Land Trust" Us folks in the show me state just get a little creative some times LOL
Michelle,
It seems that we both have questions about Land Trusts. You probably already know what I know. Here's my two cents. It would be, indeed, a scary thing, if no one else knows more about this than I do!
(I'm extremely new to this webiste and forum. Last week I posted my request for help regarding the Land Trust, but I don't see it posted anymore. I wonder what happens to old forum topics? Yep, I'm new at this. Maybe I'll try posting it again?)
I have a plethora of forms from Ron LeGrand's Cash Flow System (based in Florida), but I need to be certain that I am using forms that are legal in California! In fact, I don't think I can use any of the forms that the course provided. Here is some of the things about Land Trusts I got from the course. Ron's guest speaker was Shawn Casey, a lawyer from Pittsburg, PA. He was the one to explain the Land Trust and how to fill it out. He warned that many would not understand or know about Land Trusts. I may have to follow his suggestion and call a Title company in Chicago, as this is where the Land Trust originated. Apparently, Title companies in Illonois have this Land Trust down pat.
LAND TRUST:
A Land Trust is merely a "vehicle for holding title to a property". The Land Trust owns the property and the beneficiary owns the Land Trust. One uses a Land Trust for each
individual property. The beneficiary appoints a Trustee to sign the deed, title and any other documents that are recorded down at the court house. There are no tax consequences whatsoever in using this Land Trust. As an
individual real estate investor or a corporation, there are a lot of benefits in using Land Trusts.
I am presently am in possession of an "AGREEMENT AND DECLARATION OF TRUST" (LAND TRUST) form which is "suppose" to be
legal in all 50 states, but wonder about its legality for California. A second form you use in conjunction with the Land Trust is called an
"ASSIGNMENT OF BENEFICIAL INTEREST", which is how you transfer the Land Trust to a new beneficiary. The third document that is used in conjunction with the Land Trust is the "WARRANTY DEED TO TRUSTEE", which legally transfers the property into the Land Trust by the Trustee, and is the document that is recorded down at the court house. To summarize:
a.. LAND TRUST (YOU DO NOT RECORD THIS DOCUMENT)
b.. ASSIGNMENT OF BENEFICIAL INTEREST (YOU DO NOT RECORD THIS DOCUMENT)
c.. WARRANTEE DEED TO TRUSTEE (YOU DO RECORD THIS DOCUMENT!)
I have these forms, but, I don't know if these forms have all the necessary clauses required by California law. Probably not. They may be called something else, here in CA, if they exist at all. This is where I need some help.
I know that these are not real estate forms, per say, but are an integral part of investor's real estate transaction. Outside of Ron Legrand's course, I can't find anyone that knows about it out here in California.
IS ANYONE USING A LAND TRUST IN CALIFORNIA?!?!?
Good luck, Michelle! Please let me know if you find out anything more about Land Trusts! We both need to know!
Peace,
John : )
I can't directly answer your question. However, if you are in California, check out Entrust Administration. They will be the trustee for a Real Estate Roth IRA. As part of that program they will help you set up a trust. The books they have are clear, thorough and answer most of the questions about the IRA. But they also mention the land trust. I find them to be very informative on a phone call and very willing to talk. They are in Oakland. Perhaps they can help you.
http://www.entrustadmin.com/investment_options/IRA_investing_in_Real_Estate.html
langerjp,
Thank you for the advise! I'll try contacting them next week. It has been exceedingly difficult researching this, so it is much appreciated!
John
hello id love to review the contracts you have that are good in all 50 states where do you get those ...thanx jer
The Land Trust is used throughout the Great State of California. Perhaps you have heard of the Deed of Trust and the three parties therein. Trustee, he who holds title to the land during the period of the incumbrance, he/she or it issued a Full Reconvayance upon payoff of the obligation. Instructed by the Beneficiary who issues an instruction called, Request for Full Reconvayance. Oh yes, do not forget the Trustor, thats the person who borrowed the money and surrendered title to the Power of the Deed of Trust. This wonderful??? system came to us by way of Australia who it seems was also influenced by British Common Law. But of course if you do not like this Land Trust you can always go back to regular mortgages and enforce a performance through the courts.
Now I know I slept through most of law school but way back in the 50's this was on the Bar Examination. Oh yes the instrument that assigns the Deed of Trust if you wish to sell it is called an Assignment of a Deed of Trust. You also endorse the note. All of this is of course tied to the Grant Deed which is what we use in this state to p***** title, subject of course to any recorded Deeds of Trust. You may record all of these documents, I suggest you do, or you may not. Probably have a m***** of future problems if you do not. Be happy to send you all copies of these instruments as an attachment. Suggest you do your closing with a good? attorney, or get smart, include them out and utilize the Escrow System such as we do here in California. If you are curious as to how all this came about? Very simple. Do you know how Deeds and Mortgages were entered way back in time? One of my first summer jobs was in the Hall of Records, I sat on a tall stool, had a green visor on my head and my arms were encased in black sleeves which covered the arms of my shirt. I entered in a book of deeds each transfer and encumbrance. How much easier it became when the Deed of Trust came into common ussage. Yip the End, yes it is true I am now 81, from InkPot to Computer, it seems like yesterday, sure. Dah Lucius
Hello,
Would you be so kind as to send copies of these instruments as an attachment? Do you also know if use of the instruments are legal in NJ? Thank you for all of your help.
"Be happy to send you all copies of these instruments as an attachment."
Could you send me copies of these intruments please.
Thank you,
Carlos A.
R/E Land trust
Louisbrown.com ( he is the advisor to the big REI ) and his other site is streetsmart.com,
both sites have a lot of information on *****et protection.
Good luck
Bongo
Michelle,
I have been wondering if a Land Trust is used in California. I am going to spend $30.00 for thirty minutes to speak with a seasoned Real Estate Attorney.
Look up an attorney referral service in your city, place a call and ask to speak to a Real Estate who is educated in Land Trusts for the state of California.
You pay $30.00 using your debit card, and the attorney referral service lines up an attorney who will speak to you over the telephone, it is a convenient way to get inexpensive advise.
I am also very new and would like to locate an attorney to use for a few of my contracts for a fee of not more than $200.00.
I hope this comment helps you.
Sincerely,
JIll
BS??? Does your sometime Atty---sometime ReLitter mean BS as in: Berry Safe? Berry Simple? Berry SOLID? or is it that he has not undergone either the Investment or Research to give you a WELL-INFORMED LEGAL OPINION?
Or has your Attorney come down with a case of what my friend BILL GATTEN calls:
'Cognitive Rigidity'?
Here's my take of your Atty's 2 Cents:
Unlike most professionals e.g. a Doctor, lawyers mostly (not all) suffer from the above listed DISEASE mostly B/C they are trapped inside of an EGO VACUUM.
For instance say you went to visit your physician due to a question and/or concern you had over some sickness or pain you've been experiencing in your head.
You ask the Doctor of his opinion about BRAIN TUMORS and he then turns to you and says:
"While in Med School I missed the lecture on Brain Diseases...and I suggest that you get a SIMPLE CHEST X-Ray to treat this in your head ... cuz after all everyone knows that there is only a small amount of radiation involved and it goes by so fast & painless you won't feel a thing!
Now here's my bill for $125 for your appointment + X-Ray---Good Day!"
IS your Attorney informed/researche/documented/and Qualified to make the BS assertion?
I think the odds are 99% certain that he either isn't, hasn't nor probably ever will be professionally familiar with the structuring and BENEFITS of satisfying your Land Trust requests and needs!
Go get the valuable opinion of a Lawyer whose practice is already familiar with and actively using Land Trusts for their clients!
Don't waste time nor accept the spurious/biased/non-qualifed ramblings of a 'defensive' Atty-wannabe-Relitter!
Much Success,
Derrick Ali
Derrick,
You are absolutely correct about using attornies who have educated themselves regarding Land Trusts.
I do not know much about Real Estate Investing, but I do know that I do not want to pay to educate an attorney regarding real estate investing.
My suggestion is to search the attorney referral services listed in the phone book; for a fee of $30.00, you can receive a call from an attorney who specializes in real estate transactions, if you can find an attorney who is also a CPA all the better.
I have located an attorney who specializes in Trusts of all kinds, real estate transactions and who is a lso a CPA.
My appointment is a week away, but for $30.00, I have his time for thirty minutes.via a conference call.
I am ready with all my questions crammed on a legal tablet. I am going to pick his brain and make the most out of the time.
When all my questions are answered, I will post the information so many can benefit.
Sincerely,
ill
Fresno California
Thank you for all of your acknowledgements!
Si ncerely,
derrick Ali
I have had the same effect with a couple Real Estate Lawyers. It's a shame. They won't admit when they don't know something. I would suggest getting Bill Bronchicks course on Land Trusts.
It is well worth it to put it in your RE library. I have personally purchased this course myself and have written a review on it as well.
http://www.thecreativeinvestor.com/modules.php?name=Reviews&rop=showcontent&id=3
OK in regards to the LandTrust you should all be checking out Derrick Ali's posts and check out Bill Gatten's site. Almost any question you could have regarding the Land Trust as well as all contracts and forms are available there. The web address is www.landtrust.net. When you get there make sure you read all the topics on the discussion board because there is some invaluable information there. Also Bill has posted some very informative articles on this site. Don't be shy about posting questions either because Bill is one of the most helpfull people I have run across in all of my contacts with people in this business. Hope you all get the answers you seek from these sites.
Hi,
I was just reading through your question and I was wondering if you ever figured out the answer. What do you think of land trusts finally?