Lots of great strategies here, Clint! 💪 ... We just experienced this in a closing last week, and all we had to do was submit a "Trustee Direction to the Settlement Company" where the Trustee and Beneficiaries all signed off giving permission for the closing attorney to send the closing check to someone other than the Trust (a separate LLC actually) ... It was actually super simple (Praise God!) 🙏 ... No problems 😊 ... I'm learning tons from you in these videos, Clint, so please, keep them coming!
Hi, Clint. I'm a Platinum member and am glad to be part of your organization which continually provides tremendous value to the public and your clients. My question is, if the sale proceeds were turned over to me personally, wouldn't I then create a tax event for which I'd have no write-offs, unlike my LLC?
No because your CPA will account for the income through the proper entity. You may have to 1099 the funds to the entity that held the beneficial interest.
Would opening up multiple LLC's per trust be the most ideal for tax purposes? What I mean is that you as an entrepreneur would pay %15.3 in self employment taxes yearly but would they take from the year's income as a whole or would they need %15.3 for each LLC or property? Excellent video btw. Love the DBA strategy
@Clint Coons - I love all your videos. They are extremely informative. I have a rental property that is in a Land Trust and the beneficiary is my LLC. Of course, they are not in the same name :-( I am considering selling this property and I appreciate the hack you've described in the video. However, would it be simpler to deed the property from the Land Trust to the LLC so the closing would go smoother with the Title company? Do you see any drawbacks with this approach? Thanks in advance.
Clint, I certainly appreciate your TH-cam videos and have been in the business for 40 years. I would love to know more about retitling trust, unfortunately I have titled some of the properties using the dreaded words land trust, I heard what you said but would like to make sure that I get all message and hopefully you can opine on that and help myself as well as others. Many thanks for your videos they are excellent!
Hi Clint, thx for your extremely valuable advice. Quick question: A land trust holds title to property, trustee is WY LLC, beneficiary is Grantor, LLC managing member is beneficiary... when selling the property and in order to maintain privacy, it will be sold out of the trust... for the title search for individuals, you are given a Statement of Information and have to put your SSN. How does this work for a trust or LLC? Do these entities need an EIN? Does a SOI need to be completed if seller is an entity? Thx much in advance.
Yes you can apply to an EIN for the trust. We do this routinely when our clients are selling property held in a land trust. The SOI would be completed for the land trust.
Title Company says Missouri doesn't recognize Land Trust, which is untrue from your other video 'common law'. They will not process the sale transaction, without putting a Title Insurance Exception on the Land Trust ownership, reducing any potential buyers to 'cash only' as Secondary Mortgage market won't loan with exceptions in the Title Insurance 'clouded'. Any interactions/problem like this you've had and/or can you do a video on this type of situation?
@@ClintCoons but… I am still not convinced. Since LLC bank account is already set up and we will get big chunk of money in (for example 500k) from the sale proceeds, we definitely want a clean and smooth transaction without hiccup. In fact, the reassignment to LLC is already signed and available in place. The tactics you mentioned in the video to get banks to accept your deposit are somewhat overwhelming. Why taking some risks there. Sorry Clint, I m still not clear on this part.
@@nguye1971 Kenny it may work. I am just providing you information on my experiences and those of clients who have dealt with title when using a land trust for closing. I would really like to hear how it all works out if you would not mind sharing your story. Please email me at ccoons@andersonadvisors.com. I appreciate your feedback.
Hey Clint, great video. Could you elaborate more on this if I’m trying to use a LT with a WY LLC if I’m buying and selling land very quickly. Does this process still make sense given that I only possess the land that I flip for less than say 8 weeks. Is this drawn out ordeal with a different LLC for each LT make sense for a property we don’t own very long and is there a method that’s just a secure in anonymity and protects us with less paperwork and hassle? Thanks so much!
My mother has a property in VA while living in CA and collecting SSDI. Is it feasible to place that property into a land trust and have the beneficiary of that trust be my LLC so sh doesn’t have to pay capital gains and possibly lose her SSDI benefits? Thank you for sharing all this great information. Im sure you’ve helped change many lives for the better.
If we initially have my name (Joe Owner) as the Beneficiary of the initial trust, wouldn't a title search from a potential plaintiff (Sue Smith) show that there are 100 pieces of property with Joe's name on them? Or maybe I'm mistaken that only the Trust Name appears on a title search. Isn't part of Asset Protection to hide Joe's name from title searches? Please enlighten me. Thanks in advance.
The only name to appear on title will the Trustee and the trust name. For example if I set up the 456 Street Trust with Tinker Toy, LLC as trustee title would appear as follows: tinker toy, LLC Trustee of the 456 Street Trust. Joe Owner would not appear on the current title.
Thanks. What information does the HOA (Homeowners' Association) get for the contact person for its correspondence and bills? Would that simply be the Trust name and the Trust's address (maybe a POBox)? How does the HOA get informed of the change in ownership? Thanks again.
I meant to say, how does the HOA know that the property had been deeded into a Trust and that they should now communicate with the Trust instead of Joe Owner?
Great video. Is creating a Land Trust available for a DIY'er? Is it just a piece of paper that needs to get notarized? Where can I obtain a form which I can personalize?
Love your teaching. So detailed and based on experience. Thanks for educating us. I have 1 rental property that has 200k equity, and im planning to buy 4 more. I need to talk to your team to start the process asap. Thank you
5:55 Isn't opening a bank account easier than setting up a DBA? The first involves going down to the bank with your Trust documents. The 2nd involves having to go to the County, filling out DBA paperwork, and advertising on a local paper.
I have heard people say this before but it has never worked for me or my clients. I have tried certifications, cover pages, signature pages, etc. but in the end I have always been asked to provide the entire trust. I can understand why. As an attorney I would never accept anything less than the entire trust document if my client was involved in such a deal.
If property in land trust, my llc is trustee, I personaly - benificiary , I made a decision to sell a house, where will be transfered $ , land trust don't have account, to my personal account, to LLC, who must to sign all selling doc.?
Typically the sale proceeds will be paid to the land trust. If you do not have an account in the name of the land trust then if the LLC has the same name as the trust you should be able to deposit the funds in the LLC account.
If you put a personally owned property into a land trust owned by an LLC, doesn't your name still show up in a title search as the current owner? Wouldn't it be better then, ideally, to put the property in an LLC directly, so its name shows up instead? Assuming you're willing to accept the risk of the note being called due early.
@@dexagalapagos According to Clint, a transfer to a (Land) Trust with a reasonable name won't trigger re-assessment because it'll be perceived as a simple transfer to a Living Trust that everyone is doing nowadays.
Hey Clint can you do a video on how to structure purchasing a property subject to utilizing a trust, then turning around a selling it with a wrap around mortgage, with emphasis/best practices on how to avoid the due-on-sale clause and how to handle foreclosure should your end buyer stop paying.
@@robc8096 It is typically easier to set up the LLC account. However, if the LLC is not registered in the state where YOU are collecting the rents then you will need an account in the name of the trust.
ah good to know. didn’t even dawn on me it could be more difficult to get a bank account for trust than LLC. thanks Clint. really appreciate all the educational videos you put out and your willingness to address questions that they evoke
@@ClintCoons - I was recently advised it’s okay to collect rents in a bank account corresponding to beneficiary LLC not registered in the state of the property (i.e. Georgia in this case). did he give me wrong advice, or is that allowed in certain states like GA?
Its basic common sense. Of course you have to paper trail it so everything matches. You will be the first one to sue if they give money to the wrong entity because someone simply told title they were the owner. Jim can't collect proceeds of a sale for a property John owns and it goes the same for whatever legal entity is set up as the title holder. Bashing the title company for doing their due diligence to make sure your money goes where is is supposed to go is a complete turn off.
Good point but I think you missed my point. I am not bashing title companies. Here is what I am saying. Assume you sell a property you own in your personal name. The title company verifies you are who you say you are and that you are the legal owner of the property. Now, at closing you ask the title company to wire the proceeds to your LLC account - where is the liability for the title company? The verified owner asked for the funds to be sent a different account they own and control.
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Lots of great strategies here, Clint! 💪 ... We just experienced this in a closing last week, and all we had to do was submit a "Trustee Direction to the Settlement Company" where the Trustee and Beneficiaries all signed off giving permission for the closing attorney to send the closing check to someone other than the Trust (a separate LLC actually) ... It was actually super simple (Praise God!) 🙏 ... No problems 😊 ... I'm learning tons from you in these videos, Clint, so please, keep them coming!
Awesomne
Thank you so much for replying to your comments!
Of course!!
That's a brilliant hack at 5:56. I never would've thought of that.
Thanks. Coming from the expert at land flipping at retipster.com that is appreciated.
We love your short and informative useful videos. Thanks so much!
Glad you like them!
Love the right to the meat of the question.
Thanks
Thanks so much for sharing your expertise! You are very generous!
GREAT EXPLAINATION! Thank you for sharing.
Very thoughtful and detailed.
Glad it was helpful!
What about title insurance aspects?
You should list your land trust as the named insured.
Isn't it easier to convince title company or bank if the LLC is named as 732 Broadway Trust, LLC?
Great point
Hi, Clint. I'm a Platinum member and am glad to be part of your organization which continually provides tremendous value to the public and your clients. My question is, if the sale proceeds were turned over to me personally, wouldn't I then create a tax event for which I'd have no write-offs, unlike my LLC?
No because your CPA will account for the income through the proper entity. You may have to 1099 the funds to the entity that held the beneficial interest.
Creating the DBA is a fantastic solution! Would this list of approaches also work for a refinance from a trust?
Dont see why not.
Excellent videos, gain easy to understand info important to my business. Tks so much.
Glad it was helpful!
Love your videos. Keep up with the good work great and straightforward content!!!
Max Perez
Thanks for watching.
Thank you for the information! What if you name the trust the seller's name? Helpful? Doesn't matter?
I have seen other investors take this approach and it becomes and issue when you open up a bank account or try and sell the property.
Would opening up multiple LLC's per trust be the most ideal for tax purposes? What I mean is that you as an entrepreneur would pay %15.3 in self employment taxes yearly but would they take from the year's income as a whole or would they need %15.3 for each LLC or property? Excellent video btw. Love the DBA strategy
No - one LLC per trust and you are only subject to the 15.3% if you are flipping and considered a dealer.
@Clint Coons - I love all your videos. They are extremely informative. I have a rental property that is in a Land Trust and the beneficiary is my LLC. Of course, they are not in the same name :-( I am considering selling this property and I appreciate the hack you've described in the video. However, would it be simpler to deed the property from the Land Trust to the LLC so the closing would go smoother with the Title company? Do you see any drawbacks with this approach? Thanks in advance.
No that will work.
@@ClintCoons Thank you to take the time to respond. Much appreciated.
Clint,
I certainly appreciate your TH-cam videos and have been in the business for 40 years. I would love to know more about retitling trust, unfortunately I have titled some of the properties using the dreaded words land trust,
I heard what you said but would like to make sure that I get all message and hopefully you can opine on that and help myself as well as others.
Many thanks for your videos they are excellent!
Using land trust is fine I just prefer to leave out the word "Land" to minimize confusion with third parties.
Is interest in LP or LLC considered personal property or land trust ie same as real estate
personal
Hi Clint, thx for your extremely valuable advice. Quick question: A land trust holds title to property, trustee is WY LLC, beneficiary is Grantor, LLC managing member is beneficiary... when selling the property and in order to maintain privacy, it will be sold out of the trust... for the title search for individuals, you are given a Statement of Information and have to put your SSN. How does this work for a trust or LLC? Do these entities need an EIN? Does a SOI need to be completed if seller is an entity? Thx much in advance.
Yes you can apply to an EIN for the trust. We do this routinely when our clients are selling property held in a land trust. The SOI would be completed for the land trust.
Any chance on how do this if the beneficiary was my personal living trust and not an LLC?
You will probably need to open an account under the name of the land trust.
Please have a Happy Thanksgiving and than you for your law videos that really help people.
Thank you and I hope you and your family will be able to do the same.
Title Company says Missouri doesn't recognize Land Trust, which is untrue from your other video 'common law'. They will not process the sale transaction, without putting a Title Insurance Exception on the Land Trust ownership, reducing any potential buyers to 'cash only' as Secondary Mortgage market won't loan with exceptions in the Title Insurance 'clouded'. Any interactions/problem like this you've had and/or can you do a video on this type of situation?
Sure - dont refer to the trust as a land trust and if you are asked to provide a copy of the trust then restate the trust to a living trust.
Awesome info! Thank you again Clint 🏡
Sure thing!
Wondering why you don’t want to send them a trust copy with LLC assignment instead since you already have LLC bank account established?
Because they will get confused and start digging through all of your documents. Keep it simple.
@@ClintCoons but… I am still not convinced. Since LLC bank account is already set up and we will get big chunk of money in (for example 500k) from the sale proceeds, we definitely want a clean and smooth transaction without hiccup. In fact, the reassignment to LLC is already signed and available in place. The tactics you mentioned in the video to get banks to accept your deposit are somewhat overwhelming. Why taking some risks there. Sorry Clint, I m still not clear on this part.
@@nguye1971 Kenny it may work. I am just providing you information on my experiences and those of clients who have dealt with title when using a land trust for closing. I would really like to hear how it all works out if you would not mind sharing your story. Please email me at ccoons@andersonadvisors.com. I appreciate your feedback.
Hey Clint, great video. Could you elaborate more on this if I’m trying to use a LT with a WY LLC if I’m buying and selling land very quickly. Does this process still make sense given that I only possess the land that I flip for less than say 8 weeks. Is this drawn out ordeal with a different LLC for each LT make sense for a property we don’t own very long and is there a method that’s just a secure in anonymity and protects us with less paperwork and hassle? Thanks so much!
If you are flipping land I would use one entity to flip all of my land through. Possibly an LLC taxed as a corporation.
Clint, Is the process the same when dealing with a cash buyer?
Yes because the problem will arise with the title company.
Great Thanks!
So! When you modify the trust, would it need to get dated & notarized too?
Yes you would get it notarized.
can i used a person out of the country or a foreigner as trustee for the land trust?
No it is not advised
Clint, what do you suggest about foreign LLC doing share trading or real estate investment?
Outside of my lane.
Will you do video discussing buy real estate with a land trust
He has some. Search his name.
The box title companies are used to dealing with seems pretty tiny. Thanks for these tips!
To prevent fraud and money laundering so the correct owner gets the money.
My mother has a property in VA while living in CA and collecting SSDI. Is it feasible to place that property into a land trust and have the beneficiary of that trust be my LLC so sh doesn’t have to pay capital gains and possibly lose her SSDI benefits?
Thank you for sharing all this great information. Im sure you’ve helped change many lives for the better.
I don't believe so. I recommend you seek out an elder law attorney to help with this planning.
GREAT VIDEO. THANK U.
Thanks for watching!
I have to get your price to set up my trust(s)/LLC
If you would like a FREE 30-minute consultation, you can request one here
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If we initially have my name (Joe Owner) as the Beneficiary of the initial trust, wouldn't a title search from a potential plaintiff (Sue Smith) show that there are 100 pieces of property with Joe's name on them? Or maybe I'm mistaken that only the Trust Name appears on a title search. Isn't part of Asset Protection to hide Joe's name from title searches? Please enlighten me. Thanks in advance.
The only name to appear on title will the Trustee and the trust name. For example if I set up the 456 Street Trust with Tinker Toy, LLC as trustee title would appear as follows: tinker toy, LLC Trustee of the 456 Street Trust. Joe Owner would not appear on the current title.
Thanks. What information does the HOA (Homeowners' Association) get for the contact person for its correspondence and bills? Would that simply be the Trust name and the Trust's address (maybe a POBox)? How does the HOA get informed of the change in ownership? Thanks again.
Yes you would provide the trust name and address. The HOA is not informed when the beneficiary changes.
I meant to say, how does the HOA know that the property had been deeded into a Trust and that they should now communicate with the Trust instead of Joe Owner?
You would have to notify them.
Will the wyoming llc be the parent llc to all llcs/ trust whether property grouped or singular?
Yes you only need one holding LLC for each of your real estate LLCs
Will this parent LLC be the same LLC that owns Joe Owner's stocks, bonds, savings accounts, and other assets?
@@alpinewhite No. You want a separate LLC.
Great video. Is creating a Land Trust available for a DIY'er? Is it just a piece of paper that needs to get notarized? Where can I obtain a form which I can personalize?
No there is a little more to it. I suggest you set the first one up with a professional so you see what is entailed.
Love your teaching. So detailed and based on experience. Thanks for educating us. I have 1 rental property that has 200k equity, and im planning to buy 4 more. I need to talk to your team to start the process asap. Thank you
If you would like a FREE 30-minute consultation, you can request one here
- aba.link/clintss
Clint and Toby are both brilliant in my book.
Thanks
5:55 Isn't opening a bank account easier than setting up a DBA? The first involves going down to the bank with your Trust documents. The 2nd involves having to go to the County, filling out DBA paperwork, and advertising on a local paper.
Depends on the state. Many times a DBA registration is quicker.
Why are you giving them a copy of the trust instead of the cover pages to show the positions of the trust? Please explain.
I have heard people say this before but it has never worked for me or my clients. I have tried certifications, cover pages, signature pages, etc. but in the end I have always been asked to provide the entire trust. I can understand why. As an attorney I would never accept anything less than the entire trust document if my client was involved in such a deal.
If property in land trust, my llc is trustee, I personaly - benificiary , I made a decision to sell a house, where will be transfered $ , land trust don't have account, to my personal account, to LLC, who must to sign all selling doc.?
Typically the sale proceeds will be paid to the land trust. If you do not have an account in the name of the land trust then if the LLC has the same name as the trust you should be able to deposit the funds in the LLC account.
If you put a personally owned property into a land trust owned by an LLC, doesn't your name still show up in a title search as the current owner? Wouldn't it be better then, ideally, to put the property in an LLC directly, so its name shows up instead? Assuming you're willing to accept the risk of the note being called due early.
When you title property to a land trust it no longer appears in your name. Title is held in the trustee'e name.
Plus, wouldn't a transfer to an LLC trigger a re-assessment, thus, increasing property taxes?
@@alpinewhite Doesn't assignment to a land trust trigger a re-assessment as well?
@@dexagalapagos According to Clint, a transfer to a (Land) Trust with a reasonable name won't trigger re-assessment because it'll be perceived as a simple transfer to a Living Trust that everyone is doing nowadays.
Why not just cash the check then deposit the cash into the correct account?
If you do not have a land trust account setup then it can be a problem. If you have a land trust bank account then you are correct.
Hey Clint can you do a video on how to structure purchasing a property subject to utilizing a trust, then turning around a selling it with a wrap around mortgage, with emphasis/best practices on how to avoid the due-on-sale clause and how to handle foreclosure should your end buyer stop paying.
Thanks for the great topics. I will put something together.
My land trust can open a bank account, but using my SSN, is this alright?
Yes but you should pull an EIN for your land trust if you want to open a bank account.
@@ClintCoons - why do you prefer setting up the bank account in the name of the beneficiary LLC rather than the trust?
@@robc8096 It is typically easier to set up the LLC account. However, if the LLC is not registered in the state where YOU are collecting the rents then you will need an account in the name of the trust.
ah good to know. didn’t even dawn on me it could be more difficult to get a bank account for trust than LLC. thanks Clint. really appreciate all the educational videos you put out and your willingness to address questions that they evoke
@@ClintCoons - I was recently advised it’s okay to collect rents in a bank account corresponding to beneficiary LLC not registered in the state of the property (i.e. Georgia in this case). did he give me wrong advice, or is that allowed in certain states like GA?
Its basic common sense. Of course you have to paper trail it so everything matches. You will be the first one to sue if they give money to the wrong entity because someone simply told title they were the owner. Jim can't collect proceeds of a sale for a property John owns and it goes the same for whatever legal entity is set up as the title holder. Bashing the title company for doing their due diligence to make sure your money goes where is is supposed to go is a complete turn off.
Good point but I think you missed my point. I am not bashing title companies. Here is what I am saying. Assume you sell a property you own in your personal name. The title company verifies you are who you say you are and that you are the legal owner of the property. Now, at closing you ask the title company to wire the proceeds to your LLC account - where is the liability for the title company? The verified owner asked for the funds to be sent a different account they own and control.
I bet Carl Zeller (sp?) love you, :>)