Why You Need Land Trusts

Warning

To Anyone Who Owns Real Estate:

If You Own Any Properties In Your Own Name Statistics Show You Have A Huge Target On Your Back And A Damaging Lawsuit Could Be Just Around The Corner If You Don’t Do Something FAST To Prevent It From Happening To You!

 

Let me share some very important facts that unless you do something quickly could cost you everything you’ve worked hard for.

Fact:

Did you know that approximately 1 in every 12 people in this country will be involved in a lawsuit this year!

Fact:

Fraudulent lawsuits are a $5 Billion dollar business affecting many unsuspecting and innocent people each year.

Fact:

Every year at least 7,000,000 (seven million) Slip-and-Fall Civil lawsuits are filed throughout this country. That means that at the very least 14,000,000 (fourteen million) people and their families will be party to those lawsuits that 85% to 95% are settled out of court. Most of these are nuisance suits generated just to get money.

Do you want to be the next victim? Forget about the time, stress and anxiety you and your family will experience just because you are named in a lawsuit. Even if you aren’t guilty of doing anything wrong it can ruin your life. When you are sued it costs you time, personal grief and attorney’s fees regardless of the outcome of the case. This doesn’t sound like a good formula for accumulating wealth to me.

The good news, there is a solution that will help you better protect the real estate assets you have and the ones you acquire in the future and it won’t cost you a fortune  or give you stress in your life. Sound interesting? Does it sound like something you would like to hear more about? If so, please read on…….

Larry PicHi, my name is Larry Harbolt and over the 35 plus years I've been investing in real estate I've learned the importance of protecting those real estate assets you acquire from lawsuit Happy Americans. I’ve watched investors lose part or all of what they have accumulated from years of hard work just because they had the appearance of having money.

In my father’s day, people were proud of what they had and wanted the world to know how successful they were, but that was then and today it’s a totally different story. Today it isn’t a good idea to show any signs of affluence or someone will try to take away your wealth using the court system instead of working for what they get. Suing people has become the new way to achieve financial freedom in the shortest and easiest way possible. It has always amazed me how anyone can sleep nights who sue people at random just to get money.

Another thing that I find unsettling is the fact that no matter how a person who is suing has been damaged, maybe from being insulted, accosted, hurt or mis-used in some way in their minds, money seems to be the only way to right the wrong they feel has been inflicted upon them. Scary isn’t it? The worst part of this problem is, you never know when someone is being offended by you or when they get hurt on one of your properties. It can happen at any time and you probably won’t know when it happens until a lawsuit has been filed against you.

So what’s the solution to this problem or is there a solution? It’s not a matter of if you will be involved in a nuisance lawsuit of some kind it’s a matter of when. The thing I have learned over my 35 plus year real estate investing career is to be prepared before a lawsuit happens to you. Don’t wait until later then try to protect yourself after you have been served court papers. That doesn’t work. The time to protect you real estate assets is NOW, not tomorrow when it may be too late.

You may be asking if there is a perfect solution to prevent a lawsuit happening to you and the answer to that question is NO because anyone can sue you for anything at any time. The good part of the problem is, we can make it not only difficult to find who owns any property we can also make that process for the person suing very, very costly, forcing them to quickly to have a conversation with their checkbook and ask themselves, “How mad am I? How much am I willing to spend to get money when the process isn’t going to be easy to get.” When the attorneys are finding it extremely difficult to find the name of the owner of a property, the clock keeps on ticking and the person suing is being charged more and more hours without much success, in my opinion is real justice.

How would you like to learn how to be completely legal at foiling almost any adversary who is suing you simply by making it difficult to easily find who the real owner of any property is? That is what this article is all about. Being perfectly legal, yet extremely expensive to pursue, that is my goal. If they want to sue you, let them pay a hefty price! Let me show you how it doesn’t get much better than that.

The real secret that will allow you to create this expensive solution to any trip-and-fall person and their contingency fee attorney is called the “Land Trust.” Many of the seasoned investors I know around the country who own multiple properties would never own any of those properties in their own name simply because of this problem. They own all of their investment properties in separate land trusts. Their name never shows in public records where the people who sue for a living can find everything you own and approximately how much equity you have in each property. Because all of their properties are not in their personal name it is extremely difficult to find out who the owner really is without an expensive search and a court case.

My goal is to make the task of suing me just because you assume I own a particular property very, very costly and time consuming. If I’ve learned one thing every real estate investor needs to know it is; “Own Nothing, Control Everything” and the land trust will allow you to do just that! Do you want to hear more?

It has been said that I’ve perfected using the land trust to help deter anyone suing one or more of your properties. You might say I’ve cracked the code, if you will. I have figured ways to use the land trust to not only help protect your real estate assets but to also keep your personal real estate business information totally confidential so it is going to be nearly impossible to find out exactly what you have and where your treasure is located. For anyone who wants to sue you, let’s make it a guessing game of what you own and what your real estate portfolio is worth. Let them assume all they want because they will never know for sure what properties you own, or if you own any properties at all.

OK, so what is a land trust?

The land trust is a simple title holding trust that was originally started in Illinois; that is why they are often called Illinois Land Trusts. The purpose of a land trust is to allow a property owner to have the legal title to his or her property held by another person, commonly known as a trustee while retaining all of the rights and privileges of property ownership (the beneficial interest) of the trust property. The trustee acts only upon the beneficiary’s written directions (if the trustee is smart). The property owner still gets to keep all of the property rights, such as the right to possession, the right to collect rent, the ability to mortgage the property, to be able to get homestead exemption for the property if it is their primary home, and any other benefit the property owner had before putting the property into the land trust.

The Land Trust Avoids Probate, Save Taxes

Any property held in a land trust can be designated for transfer of ownership whenever you desire. Your spouse, children or other successors can avoid costly and time consuming probate proceedings and are able to sell or refinance the trust property without delay. Probates many times take years to settle. With a land trust your heirs can immediately sell the trust property and avoid making any further payments on the property they inherit but don't wish to keep.

The Land Trust Can Protect Your Credit Report

Public recordings of any property you may acquire or already own will show up on your personal credit report. This can lower your credit score and make it harder to get credit. If you hold title to property in a land trust, any liens relating to your property do not report to your personal credit report. This is because the lien attaches to the property and not to you. This allows you time to work out the problem with the lien since it doesn’t appear on your credit report.

The Land Trust Will Insulate You from Liens & Judgments

Liens, judgments, a lis pen dens (the filing of a lawsuit) and claims made by city and/or your county government usually attach to property held by a person in his or her name. This can make the property more difficult to sell or refinance if this were to happen. Yet, the same property if held in a land trust any legal matters affecting the beneficiary or beneficiaries do not pass through to the subject property, and if one or more beneficiary has legal problems, those legal problems do not attach to the land trust property.

 

The Land Trust Provides Privacy

The legal ownership of all real estate is listed with the county recorder's office in all counties. That means your personal information is available to anyone who wants it. This may be the reason why many property owners are constantly solicited by mortgage brokers to apply for new loans. When you form a land trust, your interest in the property remains confidential. I think we all believe that matters of real estate ownership should be private. You don't need to let anyone know your bank account number, or balances. Why let the entire world know about your real estate holdings, it’s nobody’s business? A land trust offers a way to maintain privacy about your real estate ownership.

The Land Trust v. LLCs and Corporations

Many advisors and attorneys tell real estate owners to hold title to their properties in LLCs or corporations. This may provide some asset protection, but it also has some draw backs. We believe that the absolute best way to hold title to real estate is with a combination of the land trust and an LLC. This means you get all the advantage of both forms. However, this may not be the best thing for all real estate owners. Only your Certified Public Accountant can advise you about this.

Let me ask you some questions to help you decide if you need to put your properties into separate land trusts.

Do you want to make sure that your heirs can pass title to your properties without being tied up in probate for years?

If so, then you need a land trust!

Do you want to protect your property from liens and judgments that may have nothing to do with you, such as those from business partners, ex-spouses or other family members?

If so, then you need a land trust!

Do you want your investment properties to be isolated from lawsuits that may arise out of your actions not related to the property, such as an auto accident or other business situation for which you are unjustly sued?

Is so, then you need a land trust!

Do you want to keep liens or judgments related to your property, that you dispute, or are not responsible for from being reported to your personal credit report?

If so, then you need a land trust!

Do you want to have the privacy from the entire world knowing your business through public records regarding your real estate?

If so, then you need a land trust!

Do you want to keep city inspectors or other governmental or private employees from knowing where all of the properties you own are, and possibly linking a problem in one to all the others?

If so, then you need a land trust!

Do you want to minimize your risk of being a target of an over zealous lawyer and their sleazy trip and fall clients simply because they know that you own real estate?

If so, then you need a land trust!

Learn How to Quickly Protect Yourself, Your Family, Property and Credit  

Learn how Land Trusts can be your real estate safety net and security blanket.
You've now heard about land trusts, and now there is an easy and inexpensive way to place your real estate assets, whether ones you already own or ones you are about to buy in a simple property holding trust.I hope you will join me on July 8, 2014 at 6:30 p.m. at the West Florida Real Estate Investors Association meeting. It is held at the Sarasota Association of Realtors building, 2320 Cattleman Rd, Sarasota. First time attendees are welcome – just RSVP at

http://westfloridareia.com/special-guest-rsvp/

Join me for an evening of information unlike anything you’ve ever heard about how to better protect your real estate assets.

Hope to see you there!

Larry