Realty411 Magazine Featuring Lee Arnold from Cogo Capital | Page 45
Is It Honest to Use
A Land Trust?
By Randy Hughes,
Mr. Land Trust
I
have been using Land
Trusts for over 40 years in
my real estate business, but
every now and then someone
will challenge me as to the purpose
and "honesty" in using a Land
Trust to hold title to real estate
investments. Let's clear the air.
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 and that he should
reconsider their use and benefits.
I went on to review with the club
owner why it is important to NOT
have your name in the public
records as owner of real property:
1. A group of investors 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.
2. Coowners might desire that
the interest of each beneficiary
must be kept private.
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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
(helps with daytoday
management and lease renewal
negotiations).
6. Cobeneficiaries want to know
that a lien or judgment or divorce
of one beneficiary will not affect
the title to the property.