forming a trust with existing mortgage

[Alex Alaniz]

I've been doing a lot of reading and research regarding land trust and I am interested in learning more and possibly using this as a tool as I progress in my real estate journey.

My question is, can you form a land trust and make an LLC the beneficiary if there is existing financing on the property? My reason for doing this is to take my name off the title and replace it with the LLC which will be the beneficiary and maybe a family member or attorney as the trustee. Also, if I want to seller finance a deal in the future this may be an option for me.

Thanks in advance for any information that comes my way!

-Alex

I posted this in general discussion and didn't get any responses, so hopefully someone can give me some good information here!

[Jay Hinrichs]

well just title them in an LLC... I equate trusts to estate planning... but then again I understand we all have levels of privacy that we may or may not want or need....

At the end of the day and this I can assure you of... if your sued no matter what you have set up you will get named personally and this is where proper insurance comes to play.. you will spend Thousands upon Thousands in attorneys fees trying to insulate yourself from personal liability in this business.. why not just set up correctly in the beginning.

The other number one thing you can do to keep from getting sued is simply take care of your properties in a professional manner.. the reality is the only landlords that really have liability issues are usually slum lords and only if they OWN a lot of them..and their acts are egregious ( which I am quite sure does not describe you )...

But if you want to go through all those steps no problem go for it.. nothing wrong with it either.. just at the end of the day once you have a few years experience at this you will realize in the buy and hold rental game LLC + insurance is really all you need from a liability standpoint.. and if you have a partner that's even better .. much harder to pierce than a single member.