Land Trust Blog Series: Intro

Land Trusts Intro

I believe Land Trusts are one of the most misunderstood real estate investment tools nationwide. My plan it to make this a series of posts that will touch on what a land trust is and what it is not, clear up myths and misconceptions and pass along some tips and tricks. It will be basic, but if you understand the basics you can then start to get really specific and use them to cater to your particular investment portfolio. I haven’t decided how my parts will be in the series so my plan is to just take one topic at a time.

First, my back ground with these creatures:

If I had to pick something that was “my thing” it would probably be Land Trusts. Never would I have imagined when I graduated law school that would be the case, but about 6 years ago Debbie Farnell of Southeast Professional Title handed me Mark Warda’s book on the subject and my gears have been turning ever since. In those 6 years or so I have drafted hundreds of land trusts, given seminars, and helped clients use them to acquire property from every realm of real estate- from SFR retail deals to bankruptcy estates. In doing so, we have hopefully begun to repair some of the damage from the past when unsavory characters used land trust in highly unethical applications.

You will read about the negative connotations associated with land trust on real estate forums and be warned about them by the know-it-all’s. I’ve heard it all and been accused of it all. As a matter of fact, I was once (actually three times) told I had been “black listed” by Big Bank due to my relentless (and apparently notorious) use of the tool. Obviously, since I was using them soooo much I MUST be up to no good. That was definitely a problem because it would have meant my clients couldn’t use my land trusts to acquire bank properties. That didn’t last any longer that it took me to get a slander cease and desist letter to the powers that be for the storm to pass. I have come to learn that any such hysterics are, 9 times out of 10, due to either a lack of understanding or jealously of the competition.

Point being – land trust are actually very simple creatures and if understood they can be used in endless ways and for reasons we have yet to even figure out – all within the perfectly legal boundaries of the statute. However, as history has proven, they can be abused. I hope everyone can take the information coming up in this series to get to understand this useful investment tool and not destroy what has taken investors years to rebuild – Land Trust As A Legitimate Real Estate Investment Tool.