LLC Or Land Trust?
I did my first subject two deal with my LLC taking title. I'm thinking of re-recording the deed. Putting the property in a land trust with my LLC as the beneficiary. Should I leave the property as is, or go with the Land Trust?
Please help. :-?
Are you just bored and looking for something to do with your time, or do you have a specific reason for doing that.
I don't see the reason. Please elaborate.
Sam
LOL. Well I was just thinking of better avoiding the Due of Sales clause. Plus, I wanted to change the Insurance policy to a landlord protection policy and wasn't sure if that would shed light on the change of title.
The whole purpose in this is asset protection. I would suggest placing your property in a land trust with the benificial interest of your LLC. CYA. Why would you not want to put up as many sheilds and defense as posible. You will be sued, why not make the atturney work for it?
Best to you
Sire
If it was that serious, any competent attorney can pierce the trust and get to you. The Land Trust does not provide asset protection, the LLC does. The Land Trust has other benefits, one of them no being asset protection.
You can search the forms for all the info on what Land Trust do and don't do...there's TONS of it.
I would say to this situtation that what is done is done and don't worry about it. It's just one property, not really that big of a deal. The next one you buy you can do the whole Land Trust thing.
I don't know about you but to get through a Land Trust in our state you have to have a court order. Plus your name is not on deed or record. If you have a probono attur. doing a search and you have no other property showing up on record, that will usually stop them. LLC provides the protection from creditors and judgements, but for an up front sheild I would always use a Land Trust.
Best to you
Sire
In a nutshell...
LLC = liability protection
Land Trust = Privacy
Privacy = 1. Harder for lenders to discover a sale and therefore can shield you from the DOS clause (best when done when you close on the property) and 2. Makes it impossible for a lender to go to the county recorders office and look up who owns that property and discover all of their other assets as well.
As you get bigger and start worrying about estate planning, you may want to incorporate FLP's as well (Family Limited Partnerships).
Hey , Sire
Is a land trust legal in TN?
energy:
but if you're trying to hide the transfer to avoid DOS, isn't it a little too late? If you recorded the deed already, then re-record it as a transfer to the trust, the original recording is still in the chain of title. If you believe some posters here and believe that the lender is scouring records looking for DOS violators, your first recording would be all the flag they'd need to start asking questions.
I may be wrong here (and I'm sure someone will tell me
Or is there another reason you're thinking of doing this transfer?
Andy
arytkatz
You are correct. Its a little to late for me. What I will do next time is stay with a trust. Question I have now is will the insurance company allow me to convert the polcy to a landlord protection policy with the title being in the LLC? I know I need my own polcy, but Im wondering about the existing polcy.
Does it make sense to make the LLC the beneficiary of the land trust?
Land trusts are legal in all 50 states and you can do them yourself.
You don't need an attorney, court order, any of those things. Just the granting documents and the trust agreements.
LLC provides protection,
Trust is a way to hide,
S corp has the tax benefits
SO, hold property in an LLC and take profits out through your S corp & of course use a trust to hide or shield assets. A great way to keep the ex from finding out what you have
Stockpro99
I don't have an S'Corp as of yet. So should I make myself the beneficiary or the LLC until I get an S-Corp?
I would put the name of the beneficiary as the LLC if you have one or yourself in the short term. You need to be able to control the cash flow. You can assign beneficial interest to your "S" corp later. MAny people will buy and hold in an LLC and then use the S corp as the property manager, rehab company, it is even possible for your S corp to put a lien on the property so that cash comes out to it at closing.