Category Archives: Asset Protection

Is a Land Trust the Right Tool For You?

land trust, check box There are many websites devoted to the topic of land trusts. Some of these sites provide solid information while others make blatant misrepresentations. Unfortunately for the investor, separating fact from fiction is difficult. However, keep in mind that a land trust is a simple tool that has been around since King Henry VIII ruled England. Its purpose then, to hide ownership of land (this was done so a commoner would not have to serve in the military or lose the benefits of his land upon death), is the same today.

Privacy

One of the benefits that a land trust confers is anonymity for the investor. However, anonymity is only available in the following situations:

Title is taken in the name of the trust;
Someone other than the beneficiary is named as a trustee; and
The beneficiary is not a party to the mortgage

The last two points are the most important because real property can always be transferred into a land trust to remove an investors name from the chain of title but if his name appears as a trustee or he is listed on the mortgage, privacy is lost. Continue reading →

Does Your State Recognize Land Trusts?

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BawldGuy Here: You’ll notice at the bottom there’s a ‘Learn More’ button. This will lead you to a page promoting Clint’s seminar in Orange County which is coming soon. I’ve been to his seminars, and can easily recommend them to my readers. Now, the only thing is that they’re not free. I’ve never charged for any seminar at which I’ve spoken. I’ve spoken at various conferences that did charge, but did not profit from ticket sales. Clint’s 2-Day seminars are well worth the admission price. Most seminars are put on by folks who’re merely a few chapters ahead of their audience in the book, whereas Clint could literally write the dang book. ‘Nuff said. I endorse Clint’s seminar. Enjoy his post

From whom are you receiving your information? This is my typical response to real estate investors who, during the course of a consultation, inform me land trusts are not valid in their state. Not surprisingly, nine times out of ten the answer is a local attorney. Why the erroneous advice? Because the attorney does not understand the basic principles of trust law. Most attorneys operate in a legal world where statutes control their view of the law i.e., if you are not familiar with a particular body of law and you cannot find a statute to support your idea, then the safest assumption when dealing with a client is to tell them it will not work. In other words, unless the client is willing to pay to have the attorney thoroughly research the law, he is not going to venture into uncharted waters for fear of liability. Continue reading →

The Importance of a Well Drafted LLC Operating Agreement

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BawldGuy Here: Aside from the fact that I’ve been down the partnership road many times, most of the lessons learned came from the attorney writing our agreements. This post is some of Clint’s best work. Enjoy

I was speaking in Dallas when a prospective client approached me at a break and the following question and answer session transpired:

Q: “Why should I use Anderson versus a local attorney for my entity structuring?”

(Fair question and one that a person who does not know any better should ask before deciding to enter into a long distance business relationship with an attorney in Tacoma, Washington.)

A: “Not to be glib, but we are the best at what we do. We focus solely on asset protection for investors.”

Q: “Yes, but others in my local area tell me they work with investors so what makes you different?”

A: “We just don’t work with investors – we are investors. We understand the issues you face better than most because we are in the trenches putting our own deals together and yes, not all have worked out. We apply what I like to refer to as “dirt smarts” in our client planning. You may not like to hear it, but I expect problems or possible failure in every deal. My role as you advisor is to foresee the possible problems then plan accordingly. Think of it in terms of taking a daily aspirin to prevent headaches. There are no guarantees that you will never get a headache but the aspirin regimen may decrease and probably lessen the severity of any future headaches.”

Q: “Can you give me an example?”

A: “Funny you should ask… Continue reading →

Benefits of a Self-Directed ROTH 401K — Yowza!

Using Land Trusts to Minimize California’s Franchise Fee

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llc; land trust California real estate investors are faced with a unique problem – the State of California. If you invest in California or you are a California resident investing anywhere in the known Universe, pre-planning is necessary to avoid falling prey to the California’s Empire.

The first problem for real estate investors involves creating a California business entity. If you need asset protection or tax savings and are not willing to wait the obligatory 5 months for an employee in Fresno to file your entity then you should consider creating your business outside of California. Currently, from the time you submit your business filing in California, it will appear as if it is a race between the Secretary of State to recognize it or the last judgment to arrive. This is why it is beneficial to look at other States when deciding where to form your business. Continue reading →

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Real Estate Investing Through Purposeful Planning