Unlocking Real Estate Secrets: The Power of Land Trusts
Guest Speaker: Mr. Land Trust®
In this episode, hosted by Lance Edwards, listeners are introduced to ‘Mr. Land Trust®,’ a national educator and expert on land trusts in real estate. Mr. Land Trust® explains the concept and mechanics of using land trusts to ensure privacy and asset protection by separating property ownership from personal names.
Mr. Land Trust® discusses the advantages and process of setting up land trusts, the recommended states for forming them, and the potential benefits of combining land trusts with LLCs for stronger asset protection. Mr. Land Trust® also offers free resources, including a booklet on ‘Reasons to Use a Land Trust’ and points listeners to his comprehensive home study course.
Key insights from the episode emphasize the importance of asset protection and the simplicity of establishing and managing land trusts. The session underscores practical tips and strategic advice for real estate investors aiming to safeguard their holdings.
Highlights from the Interview:
- Early Real Estate Journey:
- Mr. Land Trust® started buying houses at 19 years old and accumulated about 15 properties by the early 1970s.
- He realized that having properties in his name exposed him to lawsuits, as anyone could look up his assets through public records.
- Discovery of Land Trusts:
- To protect his assets, Mr. Land Trust® researched various methods of holding property, eventually finding that land trusts offered the best solution.
- Living in Illinois, where land trusts originated, he took advantage of the rich case law and transferred all 15 properties into separate land trusts.
- Advantages of Land Trusts:
- Land trusts provide privacy by keeping the owner’s name off public records.
- Mr. Land Trust® emphasized the importance of using a separate trust for each property to prevent cross-liability issues.
- Mr. Land Trust® pointed out that while LLCs offer asset protection, they do not provide the same level of privacy as land trusts.
- Trust Mechanics:
- A land trust involves a trustee holding the title, while the beneficiary controls the trust.
- The trust agreement between the trustee and beneficiary is not recorded publicly, ensuring privacy.
- Mr. Land Trust® recommends using creative and intimidating names for trusts to discourage frivolous lawsuits.
- Choosing a Trustee:
- Mr. Land Trust® advises selecting an individual trustee with a different last name who lives outside the county where the property is located.
- He prefers individual trustees over institutional ones for greater control and privacy.
- DIY vs. Professional Help:
- Most attorneys are not well-versed in land trusts, making it expensive to rely on them for each property.
- Mr. Land Trust® offers a home study course to help investors create their own land trusts, which can save significant money over time.
- State Selection for Land Trusts:
- While land trust laws vary by state, Mr. Land Trust® advises forming trusts in states with favorable laws, regardless of where the property is located.
- He emphasizes that you do not need to physically be in the state to form a trust there.
Get the free book here at www.LandTrustsMadeSimple.com.
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