WHY USE A LAND TRUST? RANDY HUGHES
First, I decided to get more education than anyone
forming my own Land Trusts and I set out to change
else in my family. So, I went to college and
the title of all the property currently in my name to
majored in business. While studying in college, I
my Trustee’s names.
realized that most people in America who became
wealthy did it through investment real estate. My
The title transformation from me personally to my
initial interest was in apartment buildings, but since
Trustee was liberating. I not only physically felt better
they took large amounts of down payment money
but, I actually slept better knowing that I was not
(the “nothing down” concept had not been invented
“exposed” to the public. I recommend putting each
yet), I defaulted to the single family home as my
piece of investment real estate into its own separate
IDEAL investment vehicle.
Land Trust. Why? Let me count the reasons.
By the time I graduated from college I had
First, realize that NO ONE will have an interest in
acquired three rental houses and one small office
protecting your assets like you will. This means that
building. After graduation I continued acquiring
the burden is on you to learn how to protect your
rental houses and titling them in my name
assets. Some professionals will tell you that a Land
personally. One sunny morning I woke up and
Trust is “old school” and not of value anymore.
realized the potential risk I was creating by owning
Others will tell you to title your investments directly
all these properties in my own name. These were
into a Limited Liability Company (which creates a
the days before you could access the county
nexus
recorder’s office online. But, you could go down to
registration fees). I use LLC’s extensively in my
the court house and walk into the recorder’s office
business, but not to hold title to investment property.
to look up each owner of every property in town.
Wow, was I stupid!
I
began
to
research
different ways of holding
title to real estate. When I
discovered the Land Trust
it was intriguing but VERY
difficult
to
find
any
information (especially accurate information). After years
of research I compiled
enough data to form my
first
Land
Trust.
Very
quickly I became comfortable
for
a
lawsuit
and
causes
excessive