MYTH : You cannot do a Short Sale using a LT
TRUTH : False . You can and I have and there are many advantages to using a LT for this type of transaction .
MYTH : Is it true that I must record my Trust Agreement to make it valid ?
TRUTH : No , and 99 % of the time you would not want to record your trust agreement . However , there is that 1 % reason that you might want to record . Contact me if you want to why .
MYTH : My attorney says Land Trusts are illegal in my state
TRUTH : This is probably not true . Almost all states recognize the validity of a LT or a similar type entity ( Title Holding Trust , Common Law Trust , etc .). My experience is that a vast majority of lawyers do not understand Land Trusts and therefore do not recommend them . Too bad for their clients ... they are missing out on over 50 Reasons to Use a Land Trust ( I have written a booklet called , “ Reasons to Use a Land Trust ” and will deliver it to you for free if
you text the word Reasons to 2062032005 ).
MYTH : If I use my LLC as the beneficiary of a Land Trust , I must register the LLC in the state where the property ( held inside the Land Trust ) is located .
TRUTH : Wrong ! Many accountants will tell you this , but they are incorrect . The beneficiary of the Land Trust is not " doing business " in the state where the property is located ... the Land Trust is ... and the Land Trust is not required to register .
Note : California has a law that says if you transfer more than 49 % of ANY entity that owns property in CA or is the beneficiary of a Trust that owns property in CA , they have the right to tax you .
MYTH : Land Trusts are expensive to set up and maintain
TRUTH : Not true . If you follow my advice to put each of your properties into a separate Land Trust and you hire an attorney to do this for you , it WILL get expensive . But you do not need to do this . You can learn how to set up and administer your own Land Trusts ( as many as you need / want ).
Image by mohamed Hassan from Pixabay
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