I am new to BP, and I need help
I am worried about exposing the beneficiary of a trust to a tenant.
To whom should the tenant make the check out to, the Trust or Beneficiary?
When I open a bank account, does the bank not ask for the name of the beneficiary or the do I give the name of the trust?
who is the tenant renting from? who are you in this relationship? If you are a 3rd party, representing a property you don't have an ownership interest in, what does the law say to do? Should have been covered in your licensing.
Let me clarify the question.
I am not licensed, nor am I acting as an agent.
I would be the owner of the property. The property would be in the trust, The beneficiary would be a secret, does the tenant send a check to the Trust or the beneficiary to be deposited at the bank?
Thanks for replying
Create a company and open accounts in that name. It does not have to be a formal pain in the a$$ thing like an llc or such. Just go to your bank and open a new checking account in your name....Antonio Cordeiro dba Keeping a secret from my tenants. They pay the company name....in this example Keeping a secret from my tenants. You take the check and deposit it like normal.
No need to tell them you own it or the name of the trust etc. They sign a lease agreement between themselves and the property management company that has the contractual rights to represent that property. The fact that you own both and the company is really a shell only for the purpose of keeping them in the dark is irrelevant and none of their business.
@Antonio Cordeiro you are greatly overthinking this. You just set up an account in the name of the trust. You tell the tenants to write the check out to the trust. 123 Main St Realty Trust for example. You deposit the check. I'm not sure why you are keeping yourself secret. If they call do you answer the phone and say you are somebody else? Do you have a professional management company for your properties? It seems like a lot of work to hide the beneficiary of a RE trust.
typically i overthink things, leads to nothing
Thank you for responses i have enough to move forward.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!