All Forum Posts by: Derry A. Price

Jason, I take back my previous comment, as I was interested in what you had mentioned and went ahead to further study the Land Trust and LLC "colabo"...

Ron LeGrand mentions that it is acceptable to have one entity that has beneficial interest in all Land Trusts setup to hold individual properties in individual Land Trusts. So for anyone else reading this for future note, the answer is "yes". 

But in my opinion I would rather set up multiple LLCs, depending on how you use the LLC.

For example - I wouldn't want my operating LLC to hold all of those Land Trusts, but a separate LLC that is to only hold my real estate would make sense, because I'm not out there "using" it everyday - my reason for saying "no" in the previous comment.

And in your example Jason, it would partly be to minimize paperwork, and filings for required entity structures. In "your way" - you are protected, and you have privacy, and you minimize paperwork and filings.

Jason, I am not an attorney, & this is not legal advice. - for a quick answer and based on my level of knowledge, I'm going to say "no". 

You gotta think of the Land Trust as for privacy, and the LLC would be for purposes of "liability protection". If you only set up the Land Trust, you fail at having protection. If you only set up the LLC, you could have both depending on how you "structure". But if you take all those Land Trusts and place them under the LLC, and something bad happens to the LLC, I think you would be in a "pickle", because the LLC "owns" it all.

I've learned that it's best to have 3 Properties (and perhaps in Land Trust(s)) under one LLC for various reasons that could be beneficial to you. Seek professional help and do your own research.

@MichealJames - this industry is not perfect, and you can't be afraid to fail. I'm glad you decided to take the "risk" if you were able to manage or handle the "worst case" scenario. Different things work in different markets. Have you had any success? I'm just learning to do "tapes" - however more on a direct relationship with the AMs. Share back your experience after going with it, I would like to know what I could do differently. 

Wendell, I'm not an immediate solution to your existing "problem", but if you ever come across such tapes for MA and/or RI - that would be fantastic. I have been looking at the NJ Market (being one of the top states with the most REO inventory), unfortunately I haven't established "help" there to do the due diligence - I'll see what I can do to capture what you have for NJ.