Real Estate Investor · Reading, MA · Member since 2008 · 124 posts · 15 votes
i am creating several realty trusts to hold my rental properties (which currently stands at 5)...14 units in 5 properties
my other option would be to creat an LLC to hold the 5 properties...i cant imagine creating 5 separate LLC's, its just too much work w/ 5 separate banking accounts etc...
if i go w/ the realty trusts when they do go into effect the tenants will now pay the corresponding realty trust and make checks payable to the separate trusts...
is there a way i can deposit all checks into the same bank account or do they all have to be separate?
is there a management account or something that the $$$ can be deposited into so the funds can be co-mingled?
Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
17y
Yes, you can deposit the checks wherever you like. Land trusts don't do anything but provide a LITTLE privacy - they don't provide liability protection. So, where you deposit the checks is totally irrelevant for land trusts.
The issue of keeping entities separate comes into play when you have a LLC or other legal entity, not with a land trust.
Specialist · USA · Member since 2008 · 40 posts · 5 votes
17y
Originally posted by Justin S.:
Why not just put all rentals into one LLC?
Putting all your rentals in 1 LLC makes them all vunerable to a lawsuit and everyone knows how many properties that you own.
Suppose a tenant child eats lead paint and the courts say that you are responsible and your insurance policy doesn't cover lead paint then all your properties are at risk.
Real Estate Investor · Reading, MA · Member since 2008 · 124 posts · 15 votes
16y
dan, i know this an old post from last yr...but im re-visiting this topic...i now have several more units and have created an LLC...my plan now is to have the properties moved into real estate trusts and have the LLC manage the trusts, so that i can have just 1 bank account
Real Estate Investor · New York, NY · Member since 2008 · 105 posts · 69 votes
16y
Having everything in on trust and having a LLC manage the trust is great from a organizational standpoint, but it still leaves you liable, personally liable.. You need to speak to an attorney to find a strategic way to manage this and also provides you with asset protection.
One way might be to set up three LLC's. Two for holding properties and one for management. Have checks written to the management LLC and make distributions to the holding LLC's once a quarter.