Hi. Lee Phillips.
Hi. Lee Phillips.

I want to talk to you about an issue that comes up quite often
I want to talk to you about an issue that comes up quite often

I deal with a lot of real estate investors
I deal with a lot of real estate investors

and as an attorney they always ask me the question
and as an attorney they always ask me the question

Should I use a land trust to hold my investment property
Should I use a land trust to hold my investment property

and should I have an LLC?
and should I have an LLC?

Should I have a corporation?
Should I have a corporation?

Should it be in my own name?
Should it be in my own name?

What do I do in order to protect my investment property?
What do I do in order to protect my investment property?

I'm going to talk about basically
I'm going to talk about basically

should I put it in the land trust or should I put it in an LLC
should I put it in the land trust or should I put it in an LLC

You could put it in a corporation if it were taxed under subchapter S of the IRS code.
You could put it in a corporation if it were taxed under subchapter S of the IRS code.

You will never have real estate in a corporation taxed under Chapter C of th IRS Code.
You will never have real estate in a corporation taxed under Chapter C of th IRS Code.

A C corporation? The answer's no.
A C corporation? The answer's no.

Maybe an S corporation.
Maybe an S corporation.

But the LLC will give you better asset protection. It has charging orders
But the LLC will give you better asset protection. It has charging orders

and we've got YouTubes on what is a charging order.
and we've got YouTubes on what is a charging order.

The Land Trust, however
The Land Trust, however

a lot of people, a lot of gurus say, oh use the land trust
a lot of people, a lot of gurus say, oh use the land trust

The primary issue of the Land Trust is anonymity
The primary issue of the Land Trust is anonymity

and I've talked about anonymity in some of the YouTube vidoss
and I've talked about anonymity in some of the YouTube vidoss

but the Land Trust does not give you any asset protection
but the Land Trust does not give you any asset protection

and if you back the guru's into the corner they will say
and if you back the guru's into the corner they will say

Yeah, it doesn't give you any asset protection.
Yeah, it doesn't give you any asset protection.

It doesn't matter whether you make your LLC the beneficiary
It doesn't matter whether you make your LLC the beneficiary

or what it does
or what it does

the Land Trust doesn't give you any asset protection
the Land Trust doesn't give you any asset protection

end of discussion.
end of discussion.

Period. It's a revocable trust.
Period. It's a revocable trust.

So do you put it in the Land Trust or the LLC?
So do you put it in the Land Trust or the LLC?

I would use an LLC.
I would use an LLC.

No, it gives you no anonymity,
No, it gives you no anonymity,

But it does give you legal asset protection through the corporate shield and through the charging orders
But it does give you legal asset protection through the corporate shield and through the charging orders

and we've discussed those, like I said, in other YouTube videos.
and we've discussed those, like I said, in other YouTube videos.

However, the Land Trust is easier.
However, the Land Trust is easier.

I don't have to pay a state fee
I don't have to pay a state fee

I don't have to register anything
I don't have to register anything

I don't have to do anything
I don't have to do anything

just have the Land Trust
just have the Land Trust

and title the property.
and title the property.

Additionally, the LLC has maintenance.
Additionally, the LLC has maintenance.

You have to hold your meetings
You have to hold your meetings

and file your state papers every year
and file your state papers every year

and do all this sort of garbage.
and do all this sort of garbage.

Land trust? No maintenance.
Land trust? No maintenance.

The state fees I kind of alluded to,
The state fees I kind of alluded to,

no state fee in a land trust.
no state fee in a land trust.

State fees with LLCs.
State fees with LLCs.

California, New York, New Jersey "them foreign countries"
California, New York, New Jersey "them foreign countries"

they're expensive.
they're expensive.

Every year $850 bucks in California.
Every year $850 bucks in California.

So I've actually recommended to some people in California
So I've actually recommended to some people in California

let's use the land trust.
let's use the land trust.

Use your land trust,
Use your land trust,

it's gonna save you a lot of money,
it's gonna save you a lot of money,

and take that money, take that 850 bucks
and take that money, take that 850 bucks

add it to your property casualty umbrella
add it to your property casualty umbrella

your insurance policies
your insurance policies

and you will get better asset protection
and you will get better asset protection

in all likelihood
in all likelihood

So yeah, do I use land trusts. Not usually.
So yeah, do I use land trusts. Not usually.

Are they bad? No.
Are they bad? No.

But on the other hand
But on the other hand

they're not always what they're cracked up to be
they're not always what they're cracked up to be

when you talk to the gurus about land trusts.
when you talk to the gurus about land trusts.

So I would lean towards the LLCs if possible
So I would lean towards the LLCs if possible

That's Lee Phillips's opinion.
That's Lee Phillips's opinion.

And I have very good friends who are gurus
And I have very good friends who are gurus

that use land trusts
that use land trusts

and we argue about it toe to toe
and we argue about it toe to toe

but my thoughts on it anyway.
but my thoughts on it anyway.