Posted by chet on December 23, 2004 at 09:33:36:
If you’reset on using the land trust, what’s the cost of hirng a professional trustee (a trust company) vs. the cost of commercial insurance.
A duplex in N. CA was going to cost ~3000/yr as an LLC rather than 1500 as a personal property.
Due to lack of financing, I had to put the property in my living trust.
Insuranceless in CA - Posted by mike
Posted by mike on December 23, 2004 at 01:49:14:
I have a six unit that i just acquired via sub2. I’m just wondering how most people hold their land trusts for their sub2 deals. i’m told that the trustee should be a trustworthy friend/relative that lives in a mailbox out of state, but i have not such person i can put on the trust plus what would the logistics be if that person needs to sign the deed, manage properties, etc… in reality, i would be doing the day to day management, but i would have no authority to do so on behalf of the trustee… that’s why i put my LLC as the trustee on the land trust. so i don’t have to worry about this third person. but now that i put the deed under this trust/trustee (ie: the LLC) i’m having a hard time finding an insurer since this would theoretically be a commercial policy.
my question is should i keep the LLC as trustee of the land trust and pay a premium for commercial insurance (provided i can find one in the first place) or should i change my land trust so a real person is the trustee(probably me… i know it’s bad practice but… i don’t have a 3rd person alternative) so i can find an insurance carrier and pay a lower annual premium for a non-commercial policy.
Any suggestions/feedback will be greatly appreciated. Right now the property is still under the seller’s policy.