Buy manufactured home under LLC vs land trust

[Vivianne Salazar]

When a mobile home park requires a rental lot application for a background check, do you do so under your land trust, LLC or just provide your personal information? I know John Fedro recommends land trusts but I haven't set one up yet and I have an immediate opportunity to purchase.

[John Fedro]

Hi Vivianne,

Congratulations on the possible deal very soon! I'd like to address this topic in more detail and think it's a great question. 

The reason I always use personal property trusts and land trusts is because I do feel they offer investors free amenity, probate protection, and two or three other benefits. Plus, you can create your own in a few minutes if you know how to fill one out properly. However, a bigger reason I use them is because I was taught this way and always have used them. 

I would suggest you do purchase in an LLC or some other company, as this is the true limited liability protection you are looking for. A trust is just a smoke screen of sorts that you can always choose to add on or not, however your company owning the home is the way to go either way. 

In short, do not feel pressured to use a trust or not. Just aim to help a seller and buyer, and make a good bit of profit in the middle. If you choose to use one in the future then so be it. Either way do this deal if it is profitable and you have completed all your other due diligence. Congrats again!

If you ask other investors this same question you'll get a few other answers, of which I am eager to hear people's feedback. What a seriosuly great forum this is. 

Talk soon,
John Fedro