you would transfer your interest into the land trust after you have reviewed the co-op agreement on transfers of interest to make sure it is not prohibited.
I have to take issue with your example of transferring the LT over to the new LLC when you expect a lawsuit. Sure there is no actual record of the transfer. BUT when the other person is going through your books (the ones you're required to turn over upon their request), they will see you accepting rents in the name of defendant LLC for the properties in question. They will also see you using the Old's bank account to pay bills for the subject properties. They will still get access to those properties.
Correct. If the creditor gets a judgement against you the creditor may get access to your books and records. This information would not typically be discoverable in the underlying lawsuit. The purpose of this strategy is to get the other side to take the insurance policy limits because they do not see a lot of assets. The best AP strategy would be to have one land trust held by one LLC. You bring up a great point.
Great video Clint! Can the second LLC be in a different state then the trust and property were from? Example I have property 1 in trust A, property 2 in Trust B. Both with Florida LLC as beneficy. I get sued and decide to move Trust B to a MA LLC. Is that fine?
What about having each property in its own land trust as the first layer of protection and then have them owned by one llc for each state you own property and then a holding company above all.
Could you transfer a property l,owned free and clear in an llc, to a land trust in your name… get a refi, then change the land trust with the POC as the beneficiary? Or would that cause an issue
I have a hypothetical situation 1) Initially all properties are in my name 2) Create Multiple trusts with 1 property in each 3)Single LLC is beneficiary for all trusts 4) Trust # 1 gets sued 5)I then assign benefits for Trust #2,3 etc to a new LLC Can the plaintiff demand beneficiary information from all trusts since they were initially in my name? Can they reverse the assignments (done after the lawsuit) to a new LLC ?
A plaintiff can demand anything but the plaintiff must show why he is entitled to the information. If you are using a land trust because the tenant is injured, the other land trusts are not relevant.
Hi Clint. It seems you are still violating the "spirit" of fraudulent transfers and relying on a legal technicality to get around it. Will this still hold up in 2021 and what are the chances opposing counsel will spot it since the original LLC now owns nothing. My argument would be ok why do you have an LLC with nothing in it? What are you up to?
Absolutely. If a judgement is entered against you and you are asked if you moved any assets out of the LLC you would have to disclose. Also, you are not moving all of the trusts. The land trust that is under attack will stay in the LLC..
another great video. could you make more about how a holding company could be used within the land trust llc structure. other good topics include holding Corp taxed as c Corp, s Corp or llc. and building business credit (duns number, trade lines, ect)
great info! any plans on doing a video on LLC operating agreement for real estate investors (flippers...mult member LLC with poison pill provisions) or LLC operating agreement for rental properties?)
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Excellent
Thanks
This video is the checkmate move ♟
That's amazing moving the trust to another LLC
Glad you think so.
Thanks for taking the time to explain things in a simple manner.
My pleasure!
Thank you sir
What about having a million dollar insurance policy on each property? Instead of paying for all the LLCs and All the Trusts
Its not a matter of the size of policy but the exclusions contained therein. Check out this video: ua-cam.com/video/acxLZnDViK4/v-deo.html
What if you just have 1 property per LLC? Won't it have the same outcome?
Land, trust and co-ops how does that work? 0:21
you would transfer your interest into the land trust after you have reviewed the co-op agreement on transfers of interest to make sure it is not prohibited.
Love this and all your trainings!
Thanks so much!
You’re like a ninja lawyer!
Many thanks
You illustrate it so well. Makes it easy to learn
I have to take issue with your example of transferring the LT over to the new LLC when you expect a lawsuit.
Sure there is no actual record of the transfer. BUT when the other person is going through your books (the ones you're required to turn over upon their request), they will see you accepting rents in the name of defendant LLC for the properties in question. They will also see you using the Old's bank account to pay bills for the subject properties.
They will still get access to those properties.
Correct. If the creditor gets a judgement against you the creditor may get access to your books and records. This information would not typically be discoverable in the underlying lawsuit. The purpose of this strategy is to get the other side to take the insurance policy limits because they do not see a lot of assets. The best AP strategy would be to have one land trust held by one LLC. You bring up a great point.
When is it you wouldn’t recommend getting a landtrust when investing into real estate?
Search my channel for land trusts. I have multiple videos on when to use.
Great video Clint! Can the second LLC be in a different state then the trust and property were from? Example I have property 1 in trust A, property 2 in Trust B. Both with Florida LLC as beneficy. I get sued and decide to move Trust B to a MA LLC. Is that fine?
Yes you can!
Holy shit. Having money is a lot of work
What about having each property in its own land trust as the first layer of protection and then have them owned by one llc for each state you own property and then a holding company above all.
That works.
Could you transfer a property l,owned free and clear in an llc, to a land trust in your name… get a refi, then change the land trust with the POC as the beneficiary? Or would that cause an issue
Yes you could provided the lender will accept the refi in the name of the trust.
My cooperative is in a land trust..what should I do?
Typically that is how these are structured. I like to have the land trust owned by an LLC. BTW I assume you are referring to your unit.
Amazing! Thanks for the info!
LLCs cost money every year cutting into cash flow. Isn't small claims court cheaper than a LLC?
LLCs protect you from lawsuits relating to your real estate and your real estate from your personal judgements.
Wow very infotmative.. Your so smart.. Thanks for the video. Keep them coming.
With this strategy, would you advise merely having 2 Beneficiary LLCs for all the RE holdings?
One LLC per trust.
Based on your illustration on 5:19, it appears that only 2 LLCs are needed.
I have a hypothetical situation
1) Initially all properties are in my name
2) Create Multiple trusts with 1 property in each
3)Single LLC is beneficiary for all trusts
4) Trust # 1 gets sued
5)I then assign benefits for Trust #2,3 etc to a new LLC
Can the plaintiff demand beneficiary information from all trusts since they were initially in my name?
Can they reverse the assignments (done after the lawsuit) to a new LLC ?
A plaintiff can demand anything but the plaintiff must show why he is entitled to the information. If you are using a land trust because the tenant is injured, the other land trusts are not relevant.
Thank YOU! !Thank YOU! ! Very APPRECIATED!!
Hi Clint. It seems you are still violating the "spirit" of fraudulent transfers and relying on a legal technicality to get around it. Will this still hold up in 2021 and what are the chances opposing counsel will spot it since the original LLC now owns nothing. My argument would be ok why do you have an LLC with nothing in it? What are you up to?
Absolutely. If a judgement is entered against you and you are asked if you moved any assets out of the LLC you would have to disclose. Also, you are not moving all of the trusts. The land trust that is under attack will stay in the LLC..
another great video. could you make more about how a holding company could be used within the land trust llc structure. other good topics include holding Corp taxed as c Corp, s Corp or llc. and building business credit (duns number, trade lines, ect)
IceTeaMan022 What's holding company?
You are Awesome!
Very good video
If the opposing counsel discovers the reassignment after the suit begins. That may be a problem?
How long will it take for you to quickly Assign your benefits over to the other LLC?
Just sign an assignment
So the property that I live in is switched over to a land trust but my physical address with my m name would give it away as a paper trail right?
great info!
any
plans on doing a video on LLC operating agreement for real estate
investors (flippers...mult member LLC with poison pill provisions)
or LLC operating agreement for rental properties?)
Wow that was cool what about a forged. And fraud on quitclaim deed?
Do you specialize in business trusts? They are legal entities.
Well the trust over power my parent deceased. Put house in her name?