What awesome information! Protect your ASSets! & NO TRANSACTIONAL FUNDING COSTS for double close situations

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lll

Trusts are such diverse tools and great for that as well! The hard part is finding a realtor who will deal with them. I haven't done one yet because every realtor who has a listing will not accept an offer with a trust

In some states with the SAFE act, it is no longer legal to buy with a trust, so check your state laws. (but trusts can still be used to protect assets, plan for estate and taxes) There are many lawyers that don't know much about trusts either, which I found really baffling.

But, if you are using trusts to protect your assets, you don't want to release beneficiary information to anyone and you want to keep your document private.

Gorgeous, yes, please send them to me, I'll get them on here! I'm still setting up my computer and my skeleton forms aren't on this computer yet. That would be wonderful!

Let's go kick some assets with trusts!

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Yes, the info about buying in a trust was posted a while ago in a thread by KimmyJ. But, I wanted to make sure it had a title that really stuck out. Super dooper valuable info! Dealing with computer issues and transferring files from the almost dead computer.

UPDATED: The documents are now attached to the original message.

Glad you got them and were able to post them

Having a computer failure is devastating and SOOOO time consuming! Glad you had the documents!

Now I'm currently doing offers with trusts, but relal estate agents seem to have no clue out here as to what they are. And, here, you can have a notary come to your home with the documents for closing (or you can go to someone's office). ORRR

You can have someone else go to closing and show the trust (because you don't want anyone copying it). To do this, you can actually give a limited power of attorney for someone else to sign the documents at closing for the trustee, limited to the sole purpose of closing the deal and signing the documents. So, even out of state, it is possible to do this. BUT, check with your state rules on making offers with trusts.

Also, you can make the trust applicable to laws in another state. There's a section in the trust that mentions 'governing the laws of ____ state' and it isn't limited to the state you're signing the trust in. But that is a bit more advanced stuff, so we'll keep it simple!

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Ok, I've reviewed my course because I didn't want to give any bad information.

To do the limited POA, the trustee delegates someone else through the limited POA for the sole purpose of closing on the property. The trustee needs to let the closing attorney or escrow officer know that s/he has delegated someone with a limited POA to make sure the loan is closed on time because the trustee will be out of town. As I am slowly rebuilding my computer, I'll add the limited POA and any additional forms needed.

That is a good idea, I already talked to the agent about that when I submitted my offer. Well, I already knew about it, so I asked him.. I guess he was kinda puzzled I knew about that kinda stuff ...lol

great to have that info on hand.

Tammy and Gorgeous Frazier, for such important information for us newbies!
Thank you again, Carmen

Your Very Welcome,
I was just taught this information at a rei meeting 3 weeks ago and the wholesaler was nice enough to send me the info. So if i have it i think the dg fam deserves to have it also

I too have just learned the nitty gritty details. I read KimmyJ's post about trusts what seems like months ago, but I didn't realize the true powerfulness of them until I found this course, in of all places, a garage sale. Best $20 I ever spent!!!! There is so much more to the depths of trusts, but these are the things that really stand out most.

Tammy and Gorgeous you both are very generous and helpful and want you both to know trhat I'm very grateful, thank you.

I just attached the limited power of attorney so the trustee can give signing rights to someone else to close the property.

I'm doing this for the first time using it for a possible assignment (in case I can't get the financing for the deal) for an REO,

Who do you put as your beneficiaries? When I submit the offer, they want me to have proof I'm the trustee, and of course to do that, the designation has to come from the beneficiaries. But a conflict would be there if I was the beneficiary for my own LLC. Have you had any problem with this? When you close, I know that NO ONE should take any copies of the trust and that it is NOT recorded, but if the beneficiary has been changed, what have you encountered as a result of this, if anything?

Thanks! I know this will benefit others too

I want to add some more information about using the Limited Power of Attorney when the trustee is actually out of state.

When you are giving the POA to the closing attorney, or escrow, or anyone in the transaction, say something along the lines of "I have been given a limited power of attorney to.... whatever is spelled out in the LPOA... is there anything else you will need for this to take place?" Of course, the LPOA needs to be notarized and have a witness and the LPOA may be required to be recorded in public record.

your business for the beneficiaries can you put yourself as the trustee

I have a trust question and maybe I should be asking the academy, is there a trust expert there? Anyway, I heard a speaker at our REIA say that when he does seller financing (contract for deed) he is basically selling them the beneficiary interest in the trust. So if they default or some such, no foreclosure needed just kick them out! Did you course have anything about that? Thanks,

Cathy

THAT IS YET ANOTHER ADDED BENEFIT; (sorry about the caps lock, bf the baby).

Its a four day course so all the benefits can't be listed here, but its PHENOMENAL of the scope protection a land trust affords, if done right!

Great thread. Thanks.
You said you found this course at a garage sale. Would you give us the name so we can try to purchase one ourselves?
Lauri

I tried to also sumbit offers here in California with a Land Trust. Kind of had the same problems with the agent. They wanted to know why I have my offer say "exact vesting at closing"...I really couldn't get around that so I stop using them. But I would like to, does anyone know if it is still legal to purchase property with a land trust in California?

I submit offers on REOs all the time with a land trust (I'm in Southern CA). What I give is a 'Direction to Land Trust' with my offer, but I black out the name of the beneficiar(ies). The 'exact vesting TBD' is because the land trust has to be created. Since the beneficiary is not known by the buyer, you can set up your end buyer as the beneficiary. Yes, it is legal in most states to purchase property with a land trust (Even in LA which has its roots in French law and not English law), and it definitely is here in CA.

Unless your agent knows all about land trusts (which they most likely don't), it is their lack of knowledge that is causing the problem, not that it can't be done. Keep trying, and if they don't allow you to do it, you need to find another agent or have them prove to you you can't use it and the term. (they won't be able to because its perfectly legal). Just tell your agent the trust has to be created for the beneficiary because it is a purchase of a property. A trustee is bound to keep the beneficiary's privacy protected, so you can not reveal who the beneficiary is. Also, there are some mortgage companies that don't allow the mortgage to go under the land trust's TIN, and will require it to be under the beneficiary's personal name, which is why the 'vesting TBD' needs to be there as well. These are 2 things you can tell the agent.

It is CERTAIN we will SUCCEED!

Tammy's post on trusts caught my attention because I had a conversation with another real estate investor on Wednesday about putting properties in land trusts to protect assets.

Sometimes it seems things happen for a reason. Or is it coincidence?

I will definitely be able to use this discussion in my future deals.

Thanks Tammy and others...

Jim (for Alice and Jim at HomeStar2020)

1. In CA it is not called a Land Trust it is called a Title Holding Trust. You can google CA TITLE HOLDING TRUST and it should bring up Chicago Title. They have a great white sheet about Title Holding Trust.

2. An LLC can be a beneficiary. This provides even more asset protection. It is even better if the beneficiary LLC is in a state that is favorable for LLCs like Nevada.

3. Note; banks are getting fussy about trusts. Sometimes it is easier to write 123 Main Street Trust or Family Turst for taking title and then sign Jane Doe, as trustee. It seems banks freak out when they see title being taken as Jane Doe, as trustee. What the difference is I don't know, but they like 123 Main Street Trust better than Jane Doe, trustee.

How does this affect how the deed is written? I'm having my deed read ie "123 Blah Blah Street Trust, John Smith as trustee. (because it cuts off the ending, and can get the trustee in trouble if the words ‘as trustee’ don’t show; this way its the trust that will show first).

I really don't know if the 'vesting TBD' really needs to be in there because on the last deal I did in January, the buyer was completely different from the end vesting on the deed, and the closing company didn't have any problem changing it all up. What are your thoughts on this?

using vesting tbd. Banks don't like it. It really doesn't seem to make a difference whether it is Jane Doe, as trustee or main street trust. It still a trust that allows protection. The deed will read 123 main street trust instead of your name, as trustee. The trust will be on the deed not a person.

is not a sound way to do a trust. If it is ever contested, it will be found invalid due to the conflict of interest. It is always best to use someone not related to the deal at all. But, its up to your discretion.

I am learning how to make another land trust the beneficiary of the trust; when I understand it better I'll update. I don't quite understand it, seeing as a trust must have something in it to own, and if a trust is created just to be the beneficiary of another trust, I'm a little confused right now. So, if anyone knows, can you post it here? I'll know once I'm done with my training (and maybe call the success academy), but the layers is what really stacks it up and gives it the benefit of privacy. Like I explained either here or in another post; for a lawyer to figure out who the beneficiary of a trust is, its costs nearly $10K. And, if there is a trust, in a trust, in a trust, in a trust, etc., it can be super costly for someone to try to figure out who owns a property.

how would you write up the offer? If someone can pm me a sample or email me one that would be great because I am getting a little confused on the matter. When I submit my offers I was doing them as "123 Main St. Trust, Bryan Johnson as trustee, exaact vesting TBD at closing." Even with changing my agent, I was still told that the bank didn't like the trust offer, it was always an issue of not having vesting. and are you sending a copy of the trust agreement with the offer, taking it with you to closing, or are you even drafting a tangible agreement to show, if they ask for one?

Thank You for all your help in this matter.