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 Trusts 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 that he should reconsider their use and benefits. So, let s review why it is important to NOT have your name in the public records as owner of property:
- A group of people 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.
- Co-owners might desire that the interest of each beneficiary must be kept private.
- An individual owner might not want to be hassled with inquirIes regarding the property.
- A real estate investor might not want his competitors to copy his acquisition techniques.
- Real estate investors do not want their tenants to know they are the owner of the property (helps with day-to-day management).
- Co-owners want to know that a lien or judgment or divorce of one owner will not affect the title to the property.
- Out-of-state owners can avoid probate and other legal issues upon death smooth transition of succession.
- 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 partnership tax return.
- 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.
- The Trustee signs the mortgage that gets recorded preventing the debt from showing on the borrower’s credit report.
This is not an exhaustive list. If you’d like to know 40+ more reasons to use a Land Trust, text the word REASONS to 206-203-2005. My free report, Reasons to Use a Land Trust, will be delivered to your e-mail inbox.