All Forum Posts by: Kristine Baker

Hi Greg,

Starting an LLC can be done and should be done, really at any time. It provides a way to protect your assets so that the property is not in your personal name. The LLC will protect you in case of a lawsuit with you tenants..hopefully it will never happen. Look into the words Land trust...this might help you in your decision. I don't buy properties like this anymore because I have my LLC do it. But, my first properties were bought in my name...quit claimed to a land trust...and my LLC handles the mortgage payment, taxes, ect. The trust and the LLC provide asset protection. Good luck!

Hi John,

Well, you haven't really given much info on the deal.  So I do not know your numbers.  Buying Real Estate is all about leverage, correct?  It also depends on you business strategy.  Buying it out right would put more cash flow in your pocket tomorrow.  However, the total time it takes for you to get your initial investment back could take years.  Getting a loan at 20% down, 30 year fixed, you will have less expenses up front and make your initial investment of your out of pocket money sooner.  However, the catch is that you will not have as much cash flow.  So, what is your business strategy?

Hi Tomas, sounds like your debt to income ration is might be getting a little strained. I would go to your local REIA and get to know the hard and private money lenders. You need to hook up with some people interested in loaning through their roth IRA. Good luck!

Hum...I would write a JV agreement. I would look at it this way, depending on what you exit is, say it is a flip. I would get a hard money loan, split the down payment, the bulk of the money will be the loan...not out of your pocket and then split the rehab costs. Once the property is sold split the profit 50/50. Or if the down payment is similar to the rehab costs, one take the down payment, the other take the rehab costs, split the profit 50/50. Remember, buying real estate you want to use other people's money....Leverage. This will help you to do more deals, then just one. Make sure you look at your turn around time and how long you are going to hold the property. This could eat up your profit. Good Luck!

Ryan,

Great questions! I create one trust per property.  Existing properties can be transferred into a land trust at any time for asset protection planning.  So yes it can.  I will PM you.

John,  there are many ways you could go about hard situations.  You are correct, an judge might order  you to expose yourself true.  If you search hard enough you can always find away.  That is where the Florida Statues come in and a really good Trustee.  Don't get me wrong, I am not saying that is my intent and I would fix any situation before it got too far.  My point is that it is a great way to invest in real estate and their are multiple ways to use land trust and you have the added benefit of asset protection.  Believe me land trusts are not the only veil I have in place to protect myself.

It depends on how you set up the trust.  If you quick claim the property to the trust...then yes you are not 100% protected...You are barely protected.  If you handle the closing a certain way, you can keep you name completely off public record, which I do.  

So, when I sell and buy property using a land trust, I do not show up at closing.  The attorney, or whoever I chose to be the trustee handles and signs all the paperwork and closing documents.  FYI

Hi Huipiing,

#2, I was scared to work with an attorney at first. It took me a little time find the ones I trust. I started at my local REIA and went from there. They have good contacts and the attorneys typically are more knowledgeable with investor techniques. That is extremely important. The attorneys I use usually end up fixing others mistakes so I can close the deal. Land trusts are a great tool and yes do require more research. Many investors only understand the basics of them in that they are a tool to hold property and provide asset protection. There is so much more that can be done in them because once in a land trust in Florida the rules of the property change. Many attorneys only take a 2 hour course on the subject and in reality it can be more complicated. So the right attorney is essential. The attorneys I use do have a title company as part of their office so that they can close the transactions too. This might help you in your decision. I would look for that also.

In a land trust, The beneficiary owns the property. The beneficiary directs the Trustee. So the Attorney WILL NOT take the property. The property is owned by you, or your LLC. Whoever has the beneficial interest owns the property and directs the Trustee.

As for the profile. I have no idea.  I have linked bigger pockets to my website.  So, I really don't know.

@ Huiping Sheng:

Hi, you are actually talking about different topics.  I'll start with the first # 1 and 2.  The land trust document preparation can cost from $5-800 depending on who you chose to go with.  For the Trustee, I chose an attorney.  With doing that, you have a reoccurring fee of $2-300 per year.  Fee could vary depending on how many trusts you have with that person. What they do over the course of the year is to talk with 3rd parties that might have issue or questions about the property so you do not have to.  You would tell them how to answer because you are the beneficiary.  If court issues arise, the Trustee would go to court on your behalf.

#3.  This is a different type of trust.  In Florida, there are many types of trusts.  What you are inquiring about is a family trust I am guessing.  This could be a property that has gone through PROBATE, and has heirs that now own the property/estate.  The property is now in a family trust.  The best place to get these leads is to go to your local court house or county court houses and check the probate lists.  Good Luck!