Author: Randy Hughes, Land Trust University, Chicago, IL
What is a land trust? Why do I need to use land trusts? Both are very important questions. But let us be straight forward with this article. You have worked very hard to accumulate property for investment. You put yourself, you family, and your children’s future at risk investing in real estate.
Do you realize that one false move with just one of your properties can cause you to lose all of your hard earned investments. One careless tenant can be injured on your property and the world will fall all around you. Ask yourself the following question “Can you control what is happening at all of your properties right now – this minute?” Is it possible a careless tenant can be injured or die tonight in your rental property? This happens every day in America.
You need a land trust for each property. You need the knowledge that your attorney does not have on this asset preserving technique. Why work so hard over time to have one uncontrollable tenant event cause you to lose all of your properties? Come on! You have worked very hard to build your asset portfolio. Why lose it now!
Land Trusts are the first safety catch to insulate your self from the millions of lawsuits happening in America every year. Do you want protection from the contingency fee lawyer or would you rather have a bare knuckle fight with him without any defense guards in place?
You have probably noticed that it is VERY difficult to find any information about Land Trusts and how they operate. That is why people from all over the United States come to our website to find accurate information about Land Trusts. Most attorneys do not know how to set up and administer a Land Trust (they receive only three hours…if any of trust education in law school).
The problem is that most practitioners do not know how to set up and administer Land Trusts so many of them consequently advise people not to use them. However, you were probably told by someone (an attorney, accountant or friend) that you need a Land Trust, but nobody told you how or where to find information to help you get started. The point is, do not trust someone (that gives you advice) who does not have direct active knowledge of Land Trusts and their benefits.
We have been using Land Trusts in our full time real estate investment business for almost 30 years. We live and invest in Illinois (the Granddaddy state of Land Trust law) and use Land Trusts in our business constantly. We have found that often times advisors tell their clients, “You can not do that” with a Land Trust. Most of the time they are wrong!
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