Need help finding an asset PROTECTION (not planning) attorney in NC.

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Need help finding an asset PROTECTION (not planning) attorney in NC.

Matt W.
Rental Property Investor · Member since 2018 · 157 posts · 83 votes

Hi BP, 

I've explored the forums and seen many folks having the same issue I am: I have several rentals in my name with mortgages, and would like to move them into LLC's via a Land Trust. I have an estate attorney, and he looks at me like I'm crazy when I bring these sorts of things up and says they are unnecessary (and maybe he is right). I have called many local attorneys, and they also have no idea what I'm talking about.

All that said, I am looking for a recommendation for an attorney in North Carolina that can help me with these issues. If possible, maybe even someone who is versed in setting up a holding company LLC in an anonymous/strong protection state such as Wyoming.

Thanks in advance!

Keywords: Wilmington, Raleigh, Charlotte, Greenville, Durham, Asheville 

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Alyson Gordon
Real Estate Broker · Raleigh, NC · Member since 2023 · 79 posts · 57 votes
2y

I would try Jackson Law based in Raleigh or try STR Law based in TX but they have assisted me with properties in NC and VA.

Good luck!

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  • Caroline Gerardo
    Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
    2y

    Your lender is not going to okay this plan, also insurance becomes a disaster waiting to happen. There are thousands of online goofs who will set up what you want for a $9000 fee, and $2000 annual forever, thereafter. 

    LLC only helps you if you do something bad, AND you have a staff CPA to keep each penny distanced by miles not just accounts.

    Get an umbrella policy, perhaps Chubb. Get high liability coverage. Be certain you do not have health or safety hazards- get an annual inspection. Hire licensed reputable people. Find great tenants. Be a good egg. 

    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @Matt W.

    Your attorney is 100% correct.

    7e investments53 Reviews
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  • Matt W.
    OP
    Rental Property Investor · Member since 2018 · 157 posts · 83 votes
    2y
    Quote from @Caroline Gerardo:

    Your lender is not going to okay this plan, also insurance becomes a disaster waiting to happen. There are thousands of online goofs who will set up what you want for a $9000 fee, and $2000 annual forever, thereafter. 

    LLC only helps you if you do something bad, AND you have a staff CPA to keep each penny distanced by miles not just accounts.

    Get an umbrella policy, perhaps Chubb. Get high liability coverage. Be certain you do not have health or safety hazards- get an annual inspection. Hire licensed reputable people. Find great tenants. Be a good egg. 


    I would respectfully disagree with the idea that LLC's only help if you do something wrong, in our litigious society I would rather have some layer of protection.

    I agree that these youtube lawyers paint a picture that everyone is trying to sue you at all times for no good reason. I also agree that they are selling overpriced products and ridiculous subscriptions, but that doesn't mean that the concept is useless. I've talked to several of them on the phone they didn't give me a good impression. 

    Regarding if the lender would allow such a thing, they claim that "Act XYZ of 1981" or whatnot outlines how the transfer into a land trust can be done, and then beneficial interest can be assigned to an LLC later that does not violate the DOS clause. I'm not a lawyer, so I don't know if this is all kosher. Obviously they are selling the solution, so I take it with a grain of salt and that's why I'm here searching for someone relatively local.

    I have a big umbrella policy with all the extra liability you can get. I'm also a good landlord and screen well and take care of my properties. Unfortunately, I'm also a worrier! Thanks for your insight!

    0Reply
  • Caroline Gerardo
    Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
    2y

    No Act magically erases the promissory note, riders, and deed saying you will not transfer or sell the property without paying them in full. Transferring the deed to a LLC is a sale. Property taxes increase. The loss payee on your hazard insurance will not match. You will have trouble cashing a check written to the trustee from a claim that doesn't match the title. The lender can call the loan if they want. It's the servicer who is the pickle- if they code your file as a problem they recommend calling the note.

    All investments have risk. Wishing you happiness and worry free.

    1Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    2y

    @Caroline Gerardo property taxes increase with an llc? Taxes can increase but that is the first I have heard it increases property taxes. In what location?

    0Reply
  • Caroline Gerardo
    Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
    2y

    @Colleen F. the transfer deed is considered a sale by 99% of Tax Assessors in the US. It's not a family transfer deed as in transferring to a Living Trust which does not trigger the change. 

    0Reply
  • Alyson Gordon
    Real Estate Broker · Raleigh, NC · Member since 2023 · 79 posts · 57 votes
    2y

    I would try Jackson Law based in Raleigh or try STR Law based in TX but they have assisted me with properties in NC and VA.

    Good luck!

    2Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    2y

    @Caroline Gerardo so you are referring to paying transfer tax or to also increasing the property tax value if it hasn't been re-assessed. We are re-assessed every 3 years. If you transfer to an LLC there isn't a sale price right? I haven't done this so just curious as to what would happen.

    0Reply
  • Caroline Gerardo
    Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
    2y

    @Colleen F. to change from a human real person vesting of any type to an entity is a sale, in every county the deed is a transfer deed as a sale not a family transfer. The assessor sees the change some time between 1 months and a year and bumps the property tax to their current market value. Also when you file the deed change you pay transfer taxes. So there is both.

    In some states property tax increases are limited by laws ... Like Prop 13 in CA which of course they keep trying to repeal.

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