What's up guys.
Hey, it's Clint Coons here.
And in this video,
I'm going to teach you a strategy that if you're a real estate investor,
you got to have this land trust strategy in your back pocket
because it's going to help you get properties moved in the future
if you don't know what you're going to be paying,
excess deed fees blown your anonymity and a whole host of other problems
can possibly come up if you're not aware of how to use a land trust
in this very effective strategy when dealing with real estate.
So what is it that I'm talking about when it comes to using a land trust?
And I'm telling you, you need to know this.
Well, it comes down to moving property.
I'm what I'm what I'm referring to is that I see this all the time.
I'll have a real estate investor that will approach me.
And they've got a limited liability company.
They they've set up so they've set up this LLC right here
and they have some real estate inside of it.
Let's say they have three properties.
And what they desire to do is take those three properties out of that LLC
and they want it.
They want to separate them out and set up some new limited liability companies
over here
and separate out that liability, because if they leave
the properties in here, I know this red is not coming across too well,
so I'm going to go back to black.
If they leave these properties in here and something goes wrong, well,
you get hit there, then all of them are at risk.
So what they want to do is move the properties from here into a new structure.
Typically that structure is going to have a Wyoming
LLC down here, something that we always like to talk about.
So all those boxes are owned by this Wyoming LLC.
When the question is, how do we move them?
Well, I'll show you what you don't want to do.
First off, you never want to do this.
You never want to deed your properties directly from existing LLC.
Maybe it's got some problems, you just want to shut it down or whatever.
The reason is from here over to here, because that's a paper trail
and people would see that you moved it from here to here,
and they're going to know possibly that you were involved in that number two,
where this issue can come up that can really hurt you
is that when moving properties from one LLC to another, it could trigger a taxable
event for you, depending on the state in which these properties are located,
meaning it could react,
it could re-assess your taxes, it could just cause you a transfer tax.
So we don't want to jeopardize that.
So the second strategy is to do this, take the properties out,
get them to myself individually, put them in my name.
That's typically a non taxable event and then I will turn around
and did them up to the individual LLC.
Again, that's typically a non taxable event.
What's the problem with that move?
Well, the problem in using that is that when you transfer the property
yourself, that's one deed
and then there's a second deed that gets sent up to this entity over here.
So there's two deeds that get recorded.
So that's two, two filing fees you have to pay.
And on top of that, you put yourself back in the chain of title.
And it doesn't really help for anonymity if we can see all of this.
And I don't want people to know that I'm associated with these properties
because I mean, let's just face it, I don't want people knowing my business.
So what is the solution?
Well, the solution that we use here at Anderson for clients who are in
this situation is we like to use a land trust.
It's a great tool when it comes to find
working with people who have LLC that have existing properties.
It's so simple that I'm surprised more people don't use this.
And what does that mean?
What it means is this You're going to create three land trusts right up here,
and you're going to set them up with anonymity, of course,
so that no one knows that you own these trusts.
And then you're going to take the properties
and you're going to move the properties via a deed into the Land Trust.
So this LLC is actually going to deed the properties into the trust name.
So you'll see on title that the properties are formally held
here in G, R LLC and now they're held up here by
F and B LLC.
Turtle Dove LLC.
Green Excuse me, trust.
Green Frog Land Trust.
So you move the properties from the LLC into three separate trusts.
So that's one deed you have to file.
So eliminate this issue here.
I just saved on a deed filing second benefit never hit my name.
So again we solve this problem.
You're not going to be in the chain of title at all
because it's going directly into the land trust.
So this this issue no longer an issue because I moved it right up.
Now, the other benefit that comes from this type of strategy planning
is that transfer tax issue we were talking about where if you move
the properties directly to here, they'd hit you with a reassessment.
When you move from this entity into a land trust, there is no reassessment.
There is no transfer tax to put it into the trust.
So now we've eliminated any types of fees
or taxes that would hit us by putting these properties in the trust.
I hope you can get your gathering right now.
How beneficial this trust is.
The land trust is when it comes to being a real estate investor.
We like to set up these trusts for our real estate clients
in many situations because it solves so many problems that people aren't aware of.
They're told, Oh, you can't do this, or it's going to result in that.
Many times if you're working with someone who's knowledgeable, who understands land
trusts, they're going to find a way to do it.
Okay, so I've got my properties in these land trust.
And guess what?
Who who is the beneficiary of these trusts right now?
It's this LLC.
This LLC is no longer holding property.
This old LLC is holding the beneficial interest in three
trusts at this point in time.
Now, I'm going to take these beneficial interest.
So here's the thing about land trusts.
If you watch me, if you ever watch my other videos
that you better watch them on land trust is really important.
But if you have and you remember what I told you
about a land trust, is that a land trust has a beneficial interest.
That can be a sign that means transferred.
And so when you transfer the beneficial interest
of a land trust, it's not recorded anywhere.
No one knows where that trust goes.
So you can just move it over here. You move it over there.
There's no record of it.
The only record of a property
in a land trusts existence is when that property
is originally deeded into the trust, and that trust shows up on title.
Other than that, the trust.
Since the trust isn't recorded,
no one has any idea what's going on with that trust.
So what I'm going to do now, I'm going to put myself back into the picture here.
I already race myself.
I've got this LLC, I'm going to transfer the land
trust the beneficial interest to myself as that's one piece of paper.
It is so simple.
You say, What was that? F and G or G?
R LLC hereby transfers Green Frog
Trust to Clint Coons individually signed the document.
Now what I've done is I've taken this LLC out of the picture.
The LLC is no longer involved with these trusts.
All these trusts point to me as the beneficiary, and this is private.
No one knows about this because that document doesn't get filed anywhere.
You keep it in your files.
Now, once you put them in your name, I bet you can guess where they're going next.
Now you're going to turn around and assign them over here to these LLC
that you've set up to get the protection.
So this trust will go into this LLC, this trust will be assigned to this LLC,
this trust will be assigned over here to this limited liability company.
And again, one document from me personally
over to that limited liability company.
So again, that's a private document as well.
So essentially what happens, let me just show you visually
what you're going to have here when all this is said and done
is you're going to have three elses like this.
Here is my LLC and then I'm going to have a land trust
right here that it owns and that's going to own a piece of property.
So you got three exact same structures just like this
as follows
And if anything goes wrong with any of them,
then you only risk that one limited liability company right then and there.
So land trusts, there's so many different uses.
I plan to cut a few more videos I'm going to be sharing with you
on different ways you can use this tool to help you get deals done.
I mean, I've had some people, when they're first starting out,
they want to should they use the land trust?
I'll tell them, hey, if you're first getting started,
yeah, this could be the way for you to start protecting your real estate.
In fact, I'm going to cut a video on that if you
when you're first
getting started in real estate
investing, what are some of the things you should consider?
This is going to be on the top of my list if you want to set up a strategy session
to talk to someone in our firm about creating the structure like this.
If you've got trapped real estate or maybe you're looking to move real estate,
you want to avoid paying a transfer tax or having it reassessed.
Going into an LLC, be sure to go to the show notes.
I've got a link down there that you can click on
that will set you up a free strategy session
and we can walk through this with you
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Take care.