South Jersey Real Estate Investors Association

Why Use a Land Trust?

By Mr. Land Trust®, Randy Hughes

Do you remember 1969? Probably not. You may have been born after 1969 and did not find real estate as an investment until many years later. I remember the year 1969 very well. It was the year in which I purchased my first rental house. I was still in college and realized that I needed to break the cycle of poverty in my family.

First, I decided to get more education than anyone else in my family. So, I went to college and majored in business. While studying in college, I realized that most people in America who became wealthy did it through investment real estate. My initial interest was in apartment buildings, but since they took large amounts of down payment money (the “nothing down” concept had not been invented yet) I defaulted to the single family home as my IDEAL investment vehicle.

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Land Trusts vs. Limited Liability Companies

By: Mr. Land Trust®, Randy Hughes

Recently I read an article by an attorney telling his readers not to use a Land Trust. He recommended titling your investment property in a Limited Liability Company. His reasoning was that Land Trusts are only a “deterrent” to a lawsuit and they do not provide “true” asset protection. The attorney went on explaining how any lawyer “worth his salt” would find out you are the beneficiary of a Land Trust as the result of a judgment debtor’s exam (which is a hearing in a court room . . . sometimes called a Citation to Discover Assets). The attorney writing this article concluded that you have “zero” privacy with a Land Trust and if you want privacy you should “save the expense” of a Land Trust and title your investment real estate directly into an LLC (Nevada or Delaware).

After more than 40 years of in the
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Myths about Land Trusts

By: Mr. Land Trust^®, Randy Hughes 

I write and teach a lot about the many benefits to using a Land Trust to hold title to real estate investments. There is a lot of misinformation in the marketplace about Land Trusts and a lot of bad advice given regarding these title holding trusts. After using these trusts for more than 40 years, I have found that the myths outnumber the facts. In this article I will dispel some of the myths that I hear over and over.

MYTH: Only bare land can be put into a Land Trust

TRUTH: Any real estate (or real estate related asset) can be titled in a Land Trust

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