Posted by DougO(NM) on March 10, 1999 at 19:10:25:
First - The current owner should deed it directly to the trustee - which shouldn’t be you. The Trustee will sign the note and mortgage: and since trustees are not personally liable, if you get commercial money you will probably have to co-sign a note, and I’d probably insist the lender not record your note. Land Trusts work well with seller financing, are you trying for that ? If the seller is gonna carry, then this is moot. The trustee signs and thats it. If the seller wants you to sign personally, don’t buy the property ! Remember that the property you are buying should be the sole collateral for the note and mortgage. If the property isn’t good, why should the seller be able to get whatever else you have ? Doug
Land Trust - Does it still provide privacy if mortgage is involved? - Posted by SteveM(MA)
Posted by SteveM(MA) on March 10, 1999 at 11:41:35:
I’m looking at a triplex and had some questions about privacy and liability.
After reading Bill Bronchick’s articles and hearing him speak at the convention, I’ve decided that my course of action will be to hold title in a land trust with a single-member LLC as the beneficiary. Assume that I will need to personally guarantee the loan, even if it is in the name of the LLC. The question is whether the recording of the mortgage will, in effect, negate the privacy benefits of the trust. Wouldn’t it be relatively easy to find me if I’m named on the mortgage? Will I be named if I personally guarantee the loan?
The other question is whether I’d have any problem buying (taking title) in the name of the trust. Would it be easier or preferable to buy in the name of the LLC and then transfer title to the trust?
I’d appreciate any insight that those of you who have been down this road might be able to offer.