All Forum Posts by: Silvio Brigliadoro

A Land Trust will help with privacy of ownership and probate avoidance (in my state) but does not offer any liability protection. As stated by another post you can make your LLC the beni and/or have another LLC be the trustee. The identity of the trust beneficiaries can be ordered by a court order to the trustee. You can make all of this very simple or very complicated, if liability protection is not your main goal, the trust should do.

Richard, Why are they moving? There is another reason they are not cooperating with you. You can consider discussing some kind of credit @ move out for their cooperation...California law allows for notice then entry, but I wouldn't force entry except when there is a true emergency.

I think not putting a for rent sign in front your house will cost you some money in lost rents! I hardly ever list my vacancies in MLS anymore... Not 1 but 3-6 for rent sign works wonders, specially if when they call you can direct them to a web site, virtual tour, etc. About what you friend buys, could also be a great strategy, I would buy the type of inventory that fits your comfort level and personality, remember the location of the rental will dictate the type of tenants that you would have to deal with or your PM.

Couple and baby, when they are ready to buy, sell them a house. I would not do a 2 year lease, 1 year will give you more options, increase rent, kick them out, etc.
Older lady no kids.... what if she watches her 12 grand kids and their pappies everyday of the week???

I just checked MLS, and within your area you can buy a bunch of cash flow properties. I would not go out of state; specially if you are starting out.

That sounds like a great neighborhood, do it ! The most difficult part about managing, is tenant selection, the rest is much simpler with the right tenant. The wrong tenant will make it management intensive among other things, keeping up with collecting rents, the phone calls, plugged toilets, etc. Sounds like you've done lots of research, I am sure you can also research all about that and stay in control and save money. If its too much for you you can always turn it to a management company. Go get that property.

I would avoid war zones, but if you are after cash flow, some of my best cash flow properties are in blue collar neighborhoods. Have you thought about managing it yourself and save the 10% ?

Martha,
Buying out of state can look very attractive as having a management company; UNTIL you are faced with a problem (and it will happen), now the distance will make your problem that much complicated. If you polish your tenant managing skills you won't have to look for the best "landlord-friendly states", you can buy cash flow properties around your town. What did you mean by risks? Are you worried about getting sued by a tenant or contractor? There are many ways to you could minimize those risks by forming entities, LLC's, etc.

Title search and title insurance not needed; you don't need to insure the transaction if you are just putting the property you already own into your land trust. This will not trigger the due-on-sale clause, in fact in my last transaction I sent a letter to my lender and a copy of the grant deed explaining them I put the property into my trust. One of the best benefits of a trust is to avoid PROBATE, in my state a revocable trust, for the most part is governed by the same laws found in the probate code and lenders cannot call the loan due simply because of this.

If you do it yourself, just the cost to record the deed from you to your trust. If you have some one do it about $1000. No yearly cost unless you will be paying the trustee.