All Forum Posts by: Jennifer Gligoric

You’re probably taking one look at the word anonymous land trust and thinking “Nope. Don’t have time for that.” Or so you thought!

First and foremost, anonymous land trusts, like the Delaware Statutory Trust or the IRA Business Trust, gives you the powerful asset protection you need against potential lawsuits that go after your assets. At Leafy Legal Services, anonymous land trusts are basically our motto.

We’re here for you, and we’re here for anonymous land trusts.

We don’t want to be *that* company but we’re experts at making sure that your assets and future plans are protected with tax strategies that allow you to grow your wealth.

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You may also find us on the web at LeafyLegalServices.com or learn more in this brief (<90 sec) Animated Video

We know how you feel. You comb through endless piles of legal documentation and all the paperwork you said you would never have to deal with, but, here you are. Dealing with it.

Running a business is no easy feat, it comes with many roadblocks and challenges that you thought would be “all ironed out.” One thing is for sure, you like being the boss and having control over what’s yours.

Well, do we got news for you.

Here at Leafy Legal Services, we’re obsessed with helping out entrepreneurs and investors just like you. Believe it or not, our team enjoys doing all the work that is under the solo 401K “word of doom.” We know you want a solo 401K, that’s why you clicked on our ad!

Why worry about the “boring” side of running a business when you could be focused on what you do best: being boss and living your best life.

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Call (409) 761-1671 to get started with our team.

You may also find us on the web at LeafyLegalServices.com or learn more in this brief (<90 sec) Animated Video

What are you waiting for?

We get it, you've been meaning to start the Series LLC process but never got around to it. It happens to the best of us. Unfortunately, this leaves a huge gap for potential risks.

If you were to ever encounter someone angry enough to sue you and go after your assets or you're going through a divorce, you might be thinking that you have no protection against this. If you don't have a Series LLC set up, you'd be correct.

A Series LLC not only gives you the peace of mind, but also the reassurance that your assets will stay safe. Who doesn't want that? Don't wait for the risk to happen and wonder where you went wrong, stop it before it happens!

We love providing the protection that investors and entrepreneurs need in their lives. Here at Leafy Legal Services, we have a team that are experts who make sure that your assets and future plans are protected with strategies that allow you to grow your wealth.

If you didn’t think it could get any better, think again! Our end-of-the-year tax prep season discount is here, get a personalized in-depth confidential complimentary consultation now!

Call (409) 761-1671 to get started with our team.

You may also find us on the web at LeafyLegalServices.com or learn more in this brief (<90 sec) Animated Vide

If you are doing traditional financing Freddie / Fanny you will have to use your own name in financing. Freddie/Fanny do not allow for LLC Financing so that's a non-issue for those types of traditional loans.

Other types of loans might allow you to transfer out of your name and into the LLC but it needs to be on all the paperwork and contracts from the very beginning that shows both you and your designated entity. If not, if the bank sells the notes, insurance or they later see who they can raise rates on, your account might get flagged because the borrower is not the owner of the property - according to the paperwork. Banks will routinely audit to see who they might be able to get more money out of & if it's a non-disclosed material change to the original lending agreement and they did not expressly agree to the change in terms, they will want to change the terms to make them beneficial to the bank.

Also, if you do not have credit built up in that entity or equity to leverage, the chances of you getting a sweetheart rate are lower compared to your own good personal credit.   

@Martha Daisley  I have not heard of this either.  When you say "Insure the trust" that language is interesting to me.  They are insuring a property held by the trust, not the trust itself.  

@Brian S. is there any particular reason you want only in Florida or just looking for experience in legal structuring & asset protection for investors in Florida?

*My posts are not to be used as legal advice. I am not a lawyer, I am not your lawyer - I just simply happen to know the best ones.*

@Arshad Khan  This is a great question but you really need to start with what type of structure you have in place, what is your future plans and if  you might better wish to springboard the money you have into more doors. 

Are the three of you in business together currently or are you related in some way? That will make a difference in how you want to structure this. You are correct that holding the property in your name opens you up to liability which includes holding the property in an LLC that is not anonymous.

What structure you want to hold this in which also affects your tax & protection benefits, will depend on your relationship to the other owners, how long you wish to hold the property, where you all live, where the property is located, among other situations (i.e. will this tie into anyone's estate, will the property be sold eventually or is a 1031 exchange the best option, etc.) 

* I am not an attorney and I'm not YOUR attorney.  I'm simply happen to know the best ones :) *

I would recommend talking to an entity formation expert that specifically works with real estate investors with entities that are particular to investors, such as anonymous LLC's (several states depending on the investor/business might be good) or Series LLC or even DST structures. The best entity is one that provides protection not just for your business, but also your assets, and one that on top of that, is structured to be a lawsuit deterrent and is easy to manage on the backend both in accounting, banking and taxes so that you are not over-burdened.

Where you live, where your assets are located and what type of REI business you have (SF, MF, Flips, Hacking, LP, GP, etc) now and your future plan should determine the right entity.

*  I am not an attorney and I am not YOUR attorney - I just simply happen to know the best ones. :)  *

@Peter Kopchik  Unfortunately, once the lawsuit is filed, any measures to move assets are looked upon unfavorably by the courts.  The other posters are correct in that insurance can be used, but again, you must disclose the lawsuit trying to get new insurance and most will not want to cover you if they know you are currently in litigation.  Also, getting this settled by insurance is what you should hope for.  I've had clients that have had to pay settlement amounts over and above what insurance would pay or what they didn't cover under the fine print.  Having the suit come in under the State filing limit is pretty typical.  Many people get fuzzy with the details & can't find photos, etc. over time.

This is why I always recommend having insurance and having the right entity structures designed specifically for real estate investors, the state you live in and the state your properties / other businesses are held in layering protection in Series LLC, DST's, Anonymous LLC's or other types of trusts such as a QPRT ( in California, though right now with the tax laws, I don't see them as attractive as they used to be prior to the 2017 (TCJA) Tax changes to the Estate & Gift Tax portion of the Tax Cuts & Jobs Act.

You will have to go through this and then I highly suggest once it is settled, good luck by the way - I hope your insurance is able to settle it out of court for you - go & get the right anonymous entity setups for your business based on the type of investing you are doing, where you live and where your assets are located.