A Common Misconception

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. Because of that experience, he believed that it is not honest to use a Land Trust.

Puzzle of the word Trust

What Is Correct?

I told him that I was sorry that he had been misinformed about Land Trusts. I recommended that before dismissing them he should reconsider their use and benefits. So, let’s review some reasons why it is honest and important to use a Land Trust to keep your name out of the public records as the owner of the property.


10 Legal, Moral, and Non-fattening Reasons for Using a Land Trust

  1. A group of people may purchase several properties for a special purpose. It may be the desired result can be best accomplished if the objective is not made public.
  2. Co-owners might desire that the interest of each Beneficiary be kept private.
  3. An individual owner might not want to be hassled with inquirIes regarding the property.
  4. A real estate investor might not want his competitors to copy his acquisition techniques.
  5. Real estate investors do not want their tenants to know they are the owner of the property. (This helps with day-to-day management.)
  6. Co-owners want to know that a lien, or judgment, or divorce of one owner will not affect the title to the property.
  7. Out-of-state owners can avoid probate and other legal issues upon death. This is how to facilitate a smooth transition of succession.
  8. 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.
  9. Co-operative housing corporations may elect to hold title to their land and buildings in a Land Trust. They could then issue beneficial shares to their residents in place of stock certificates simplifying control and recordkeeping.
  10. The Trustee signs the mortgage that gets recorded. That prevents the debt from showing on the borrower’s credit report.

This is not an exhaustive list. Discover 40+ more reasons to use a Land Trust! Text the word REASONS (it is not case sensitive) to 206-203-2005. My free report, Reasons to Use a Land Trust, will be delivered to your e-mail inbox.

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