Posted October 3, 2023 by Victor Hernandez
Are you still using LLCs for holding title to your real estate investments?
There’s a much easier format – use a business trust company. They’ve been around since the early 1800’s in the UK when it was very difficult to obtain a corporate charter. A few savvy entrepreneurs adopted the trust structure to operate their businesses. Later it became popular in the US because states prohibited corporations from owning real estate.
LLCs are advocated by lawyers, promoters and the Secretaries of State. But there are many hidden risks such as business identity theft, public exposure of your assets, and the new corporate transparency act. No matter what state promises you privacy registration always leaves a breadcrumb trail online because it’s public information.
Learn why select states in financial despair needed and created a low cost solution to generate millions in new revenue. They needed you more than you need them.
Education and money are the two principal reasons lawyers and secretaries of state neglect to share the business trust option with you.
Equitable title is your greatest risk. Anyone can estimate the market value of your property and mortgage/loan debt to calculate your net worth. It’s easy. Say $1,000,000 market value minus $0 debt. Wow, this LLC is a rich target! Hmmm. People expose themselves all the time without even knowing it.
Business Trusts are used by REITs, Mutual Funds and WalMart. Go look it up on google – Walmart Real Estate Business Trust. Smaller private investors can use them too.
These business trusts can offer you privacy because they don’t need Secretary of State registration. Is your Living Trust registered with the State? They can also offer Recorder anonymity if you prepare the deed correctly. Few people understand how they work – maybe your advantage? Also use them for trust deed lending or property management.
If you’ve had enough of the Secretary of State hamster wheel then use a Business Trust Company. Go do it yourself or checkout our e-Seminar. After you setup the first one, you’ll never look back.
Learn how to set up your own Business Trust Company today with our E-Seminar: https://www.trustarte.com/services-and-products/business-trust-e-seminar/