Should You Use A Land Trust Or LLC To Purchase Real Estate?

Should you use a land trust or LLC to purchase real estate? The answer may surprise you as we go over the benefits both options offer prospective investors in the world of real estate.

“At the end, I’m going to show you what I think is my preference when it comes to buying real estate. It’s based upon 25 years of investing experience in my own investing and those of my clients.” 0:21

You have to realize that when it comes to real estate, there’s no one-size-fits-all answer. You have to look at your particular situation and see what makes the most sense for your particular situation.

Land trusts are typically used by people who need to protect their land from creditors or other parties, while LLCs are usually used by real estate investors. However, the decision to go with one or the other depends on the person.

If you found the video informative or entertaining, please consider sharing it with others. You can also check out our other videos to find more useful information about investing in real estate.

Subscribe to the channel if you found this video helpful. Leave us a like to help us grow and keep producing free resources like this.

Until next time, good luck with your endeavors, and have a great holiday season.

Show Notes:
0:00 Intro
0:09 Land Trust
3:18 LLC
7:07 Land Trust vs LLC
9:18 Outro
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ABOUT CLINT COONS

Clint Coons, Esq. is one of the founding partners of Anderson Law Group, Clint has grown his legal and tax firm to over 400 employees by assisting real estate investors with creating and implementing solid entity structuring plans. His success in these regards is in large part due to his personal investing experience. A successful attorney, real estate investor, and speaker, Clint has used his innovative and dynamic strategies coupled with knowledge borne from experience to help thousands of people save millions of dollars and build real wealth.

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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.

#landtrust #llc #realestateinvesting

[sandydokter]

So, to clarify, in Florida, I would put a house (no mortgage) into a land trust, with an out-of-state LLC as beneficiary, and another LLC as trustee, for anonymity? I intend to rent it out.

[Marcus-sphr]

These videos are awesome. Clear, concise, helpful, friendly presentation. AND IS an investor himself so knows how to apply it and speaking from experience. I'm hooked. Would love to hear about Irrevocable trusts

[sptheartist]

So create a Land Trust and put LLC as beneficiary?

[KittianToy]

A lender suggested closing the property loan in my name vs an LLC since the LLC is less than 3yrs old without tax returns. Would you suggest doing a quit claim to transfer the title into an LLC or set up a Land Trust after closing?

[dr.jasonbaca]

This is so good, Clint! 💪 ... We have actually been trying to close a deal we are selling out of our land trust that is taking FOREVER ⏳ because the title company/closing attorneys on the other side of the transaction don't really understand how they work, which bogs everything down and creates a lot of unnecessary paperwork they feel they need to be protected ... At the end of the day, I'm convinced at this point that the benefits far outweigh the negatives, at the same time, you make great points about LLCs and why they can be beneficial! ✅ ... Again, GREAT breakdown here Clint!

[ml]

Also due on sale clause on mortgages requires a land trust, not an LLC

[camronhardin]

So by reading the comments, I’m gathering exactly what my thoughts were. Combine the two??? Put everything in a trust. Have an LLC as the beneficiary.

What I am currently speaking to learn is - why are my investor friends putting the land in “holdings” and then the building that sits on that land in an LLC. I’m told it’s protection… I’m seeking that structured knowledge. I need to share more beers with them lol.

[Kitman]

Can I close in the land trust and assign the beneficial interest to LLC afterward so I can get anonymity and asset protection? Thanks

[vitolazlo]

In Florida land trust, the trustee and the beneficiary get asset protection from inside the Land trust.

[baomin]

Is it practical to set up both a Land Trust AND a LLC for different investing strategies? (i.e., as you just explained about auctions & sub-to vs standard purchase deals?

[megzhitz]

Fantastic videos, thank you for sharing your wealth of knowledge.

[miltoncj]

Hi Clint, love the videos! If an existing property is in a Land Trust and you purchase it while keeping the existing trust (only change of Beneficial interest)… do you pay real estate excise taxes? How would a deal like that be structured? Maybe a video on this would be good 👍🏻. Thanks!

[MSHairCandy]

Hi, with the land trust, if your not the beneficiary and your Holding company is the beneficiary would that give a person asset protection?

[xiiixt]

Thanks for the great content!
What if you're in Florida where land trusts provide inside asset protection? Is there a downside to using land trusts there coupled with a Wyoming holding company?

[EliathJMaya-yllo]

if you purchase the property under a land trust, any redemption rights are lost—that is, the right to reclaim the property just before (or after) foreclosure. Second, most land trusts are automatically disqualified from secondary market loans.

[HiNinqi]

Is an LLC still the best option with the new BOI reporting requirement in mind? Especially if you don't want your personal name in the public eye on your own home. (i.e. In the case of just your first home, or a multifamily that you occupy as the owner)?

[kattyritch]

What if I want to change the trustee? Will the deed trigger a sale and therefore taxes? Or via quit claim deed and no tax liability generated.

[jorgevelasquez]

Clint, thanks for all your amazing videos. I have a 1031 question. I am thinking of selling my rental bought with a 1031 exchange. There is a $40, 000 tax liability. If we finance the new owners with a 20 year note, how is that capital gains payed?

[metalrooves]

i plan on holding this non incme producuing farm so an LLC would not look real to the IRS after awhile....yet l need to section 179 some equipt.i have another roofing LLC and 179 equpt.is unrelated dirt equipt!....as for liablity protection, insurance may be cheap on vacant grround...im Corn-fused.I have other farms simply in my wifes and my name.no LLC....I NEED TO sit down with an attorney so l dont get broad youtube advice but more specific.

[boatenthusiastandexplorer]

Is there a income requirement for a land trust