Leveraging a "Trust" to make offers through an LLC

8 Replies

Inception (o.o) an entity within an entity!

My father owns 8 Real Estate Properties and rambled on for a period of time about how he has everything within Trusts separately. As a cryptic man, my father didn't really go into any details on how this actually worked. 

My question is: Is it worth the time and trouble to form a Trust to make offers through my LLC when I make an offer for a property? I hope I explained that correctly.

hey Sam it sounds like you're family has some real education. I highly recommend using separate trusts for every property you buy. You can have your LLC be the owner of the trust but your fam is dead tight using the trusts. Smart man.... I believe it may be best for you to start off the right way instead of trying to put properties in your LLC which will be on public record hence opening you up to predators. Let me know if I can help.....

why don't you just discuss it here openly instead of pm-ing each other? I don't care about the topic since we have llc for each and one trust,  but others will learn from your questions and answers 

Excellent point @George P. ! Here are the questions I had for @Kris Haskins to start. I'm sure you may have some input as well!

#1 What are the steps needed to take write up a trust?

#2 What legal protections does it offer?

#3 What additional steps do you have to take when doing business through a trust when we want to do things like make an offer?

Originally posted by @Sam Valme :

Excellent point @George P. ! Here are the questions I had for @Kris Haskins to start. I'm sure you may have some input as well!

#1 What are the steps needed to take write up a trust?

#2 What legal protections does it offer?

#3 What additional steps do you have to take when doing business through a trust when we want to do things like make an offer?

 #1- all you need is the land trust doc and the deed to trustee(or warranty deed) deeding it into the LT.  It sounds complicated but it's not.  We've been doing our own trusts for years..

#2 the main purpose of a LT is anonymity, when the predators come a knocking, they can't find whom the owner is of the trust.  They will be able to see your trustee so make sure he's trust worthy.  The predator CAN find you only after they've had a conversation with their wallet.  It's going to take some professional digging and can be done, but most give up before writing a check to come after you.   

#3- Depending whether the house is listed or not, you don't even have to set up the trust until the offer is accepted.  Only a few times have I had to provide the trust to a seller before my offer was accepted.  Make your offer in the name of the trust, then go set it all up after it's been accepted.  If not, you'll be creating hundreds of trusts that simple get thrown away because your offer was rejected(95% of offers).

Sam, I hope this helps all.... 

Thanks @Kris Haskins .  Have you sold anything from your LT yet?  I was wondering if ownership is so anonymous that one would have a hard time proving they even own the property to the title co.  Thanks!

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