Purchasing Real Estate and Land Trust

So you want to be a Real Estate Investor

Alot of people want to be a Real Estate investor and flip properties. There are plenty of videos out there explaining how to do the actual deals; however, do you really know how to set up an entity to do this?  Should you setup a land trust an LLC, use Uncle Bob? What is the best approach?

Opening a Land Trust

There is many attorneys that will set up a land trust for you; or you can open yourself by creating a LLC. Simply put you create a Land Trust LLC become the trustee and the beneficiary (or maybe you make Uncle Bob the beneficiary). The overwhelming spiel is that the property is in the land trust and not in your name as the beneficiary. Oh really? Well, the Land Trust is in your name. So yes, in the public record your name is not shown. What does that really make you immune from? You still have to pay taxes. Sure, maybe creditors but if someone knows you own the land trust they can certainly go to court and find you as the beneficiary. Essentially, your only hiding your name as the the title holder of the property in the county records.

An Attorney Land Trust

Having an attorney hold a land trust for you offers several advantages:

1. Legal Expertise: Attorneys are trained and experienced in navigating legal matters. They can ensure that the land trust is set up correctly according to local laws and regulations.

2. Confidentiality: Attorneys can provide an additional layer of confidentiality. They can shield your identity from public records associated with the property, enhancing privacy and security.

3. Professional Responsibility: Attorneys have a fiduciary duty to act in your best interest. This means they are legally obligated to manage the land trust in a way that protects your rights and fulfills your intentions.

4. Documentation and Compliance: Attorneys can handle all the necessary documentation and ensure compliance with legal requirements. This includes drafting trust documents, recording deeds, and fulfilling any ongoing obligations related to the trust.

5. Legal Protection: In case of disputes or legal challenges related to the trust, having an attorney involved can provide you with legal representation and protection.

6. Expert Advice: Attorneys can provide you with valuable advice regarding the implications and benefits of using a land trust for your specific situation. They can help you understand the legal and financial implications of being a beneficiary and setting up an LLC as a beneficiary.

7. Ease of Management: Trust administration can involve complex legal and administrative tasks. An attorney can handle these responsibilities on your behalf, saving you time and ensuring everything is done correctly.

8. Estate Planning: If your goal involves estate planning, an attorney can integrate the land trust into your overall estate plan. They can ensure that your assets are managed and distributed according to your wishes upon your death.

9. Foreign National Representation: An attorney can help Foreign Nationals (non-Americans) setup LLCs and become beneficiaries of the trust.

Overall, having an attorney hold a land trust for you can provide peace of mind knowing that your property is properly protected and managed in accordance with legal standards.



James C. Kunkel, P.A. (dba Kunkel Legal)    
100 E Pine Street - Suite 110  
Orlando, FL 32801 
(321) 376-6173   
info@kunkellegal.com