Posted by blogger on February 14, 2009 at 11:02:14:
NOLO Press publishes books on a number of legal topics and every big book store carries them.
Posted by blogger on February 14, 2009 at 11:02:14:
NOLO Press publishes books on a number of legal topics and every big book store carries them.
Business Entity for properties - Posted by B
Posted by B on February 09, 2009 at 13:30:17:
Hello everyone,
I own two properties with one having a mortgage attached and the other owned free and clear.
I would like to know how to transfer title into a business entity so they will no longer be listed in my name? Which type of entity is best for cash flowing propeties?
Thanks for your help.
Garn trust or LLc - Posted by John Merchant
Posted by John Merchant on February 13, 2009 at 14:04:54:
As per Garn-St.Germaine Fed law, the lender could not legally foreclose if you were to create a land trust then deed the mtg’d property into that trust.
…AND then you could sell interests in the trust as you might want, also without giving the lender any right to foreclose.
Of course these days most institutional lenders are not looking for excuses to foreclose so it’d be simpler (no lawyer required*) to form a new LLC, then deed the RE into that LLC.
Whichever entity you choose, try to use one where you do NOT have to divulge your ownership or involvement in that entity…e.g., with an LLC, find a state whose LLC laws do not require you to list the ownership of it.
I know some states DO so require so I’d avoid those state’s LLCs.
And with a trust, it’s quite legal to use the street address w/o using your own name. Now there are title co’s who don’t like this so you should check first(with your recorder) to see what specific recording issues you might encounter if you formed a trust just using the address and didn’t include your name as the beneficiary of that trust.
*NOLO Press has a good and simple book on trusts that I can recommend and it has good legal forms included.
Tom Standen (Expert) says… - Posted by John Merchant
Posted by John Merchant on February 24, 2009 at 09:00:29:
My friend Tom Standen* who is probably THE foremost expert on the use of the Living Trust and Land Trust, points out that the GStG Fed law is applicable only to a residential(and not a commeercial) property placed in trust.
Of course today there are few banks who WANT to call any loan that’s out there so their lawyers aren’t exactly scouring bank payment records to find those technically delinquent; heck they have all they can say Grace over that are months or years delinquent.
*I’d sure recommend talking to Tom Standen before deciding to deed any sizeable property into a trust as he can tell you the whys & why-nots, the costs and complications of using a trust or not. I’m sure a Google search would quickly unearth Tom in his CA office.
Re: Garn trust or LLc - Posted by Theresa
Posted by Theresa on February 14, 2009 at 10:39:32:
What is NOLO? And, how to I get in touch with them for the ‘simple book on trusts’ referenced in your comment?