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rcardin
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Status: (6) Mercedes
Joined: Oct 2007
Posts: 506
Expertise: Fastlane Student
Locale: Arlington, TX
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Gotta chime in here.....Why mess with an LLC at all? It is very easy to transfer property into a Trust. Nobody knows who the beneficiary is because that is not public record. The loan stays in your name but the courts cannot attach anything other than the equity in each property held in the trust.
The beauty of a trust is held in the tenant mentality. For example....
A tenant falls going up the stairs in your property. She/he decides they are going to sue you. As a holder of the title you are liable.

If you put it into a trust the trust is liable. Now, the trustee is pulled into court? lets say they live out of state and are hard to get in touch with. Now the attorney who was hired on a contingency fee wants cash down to pull the Trustee into court. The tenant drops the case because they don't have a retainer fee to chase the owner otherwise they wouldn't be renting.

Even if they get the Trustee to court, the Trustee cannot by contract divulge the Beneficiary of the Trust. Now the tenant needs to add more money to find the beneficiary of the Trust.

Case dropped!

On a side note my Dad is refinancing 2 of his properties and the bank wanted to know who the beneficiary is. Much easier to file the 20.00 title transfer and get it back in his name than to give up the illusion of owning nothing.

Food for thought

 
 
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GlobalWealth (Nov 13th, 2009)