All Forum Posts by: Mike Percy

@Account Closed Thanks for your fast response and providing some considerations to chew on. In this hypothetical situation I would be the sole owner of the LLC in question so I don't think it would violate the spirit of the policy. That said, now that I think about it, I wonder if this is really a kosher strategy being espoused by these guys. While I'm not a lawyer, I think many people assume their suggested strategy would be considered a legal "loophole" and a legitimate thing to do.

Hi BPers (and, I hope, helpful lawyers),

I have read online that one can secure traditional financing while getting asset protection by getting a traditional residential mortgage in one's own name, putting the title in a land trust at closing time and then, after closing, assigning an LLC as the sole beneficiary of that land trust. This is a strategy recommended by some people, especially Chris Coons from Anderson Advisors (see here and here) for reasons explained in those links and at the bottom of this post.

I spoke to a Georgia real estate attorney (closing attorney) earlier today about this and he told me that land trusts are illegal in Georgia. He also suggested that I may be able to achieve the same benefits and protections by following the same strategy using a revocable living trust instead of a land trust.

Is he right?

1. Are land trusts illegal (or effectively unusable) in Georgia? More to the point, will it be impossible for me to get title insurance with the title held in a land trust (as he says)?
2. Would a revocable living trust be an acceptable substitute for a land trust if I want to follow this strategy?
3. Are there drawbacks to this approach (vs. quit-claiming or closing in an LLC and using commercial financing) that I would be wise to consider?

As many investors know, while doing a quit-claim deed to assign ownership from an individual to an LLC is fairly common practice, it comes with the risk of a traditional loan being called due when a routine title audit discovers the reported change in ownership. That financial risk is what I want to avoid by using a trust, while also achieving inside liability protection via the LLC.

Thanks in advance for any input / non-advice. I know you are not my lawyer!

Note: I intend to check with another GA attorney on this but it would be very nice to get a sanity-check from the experienced folks on this forum.

@Adam Abdel-Hafez great, I just sent you a PM.

@Anjesh Dubey sure, happy to connect.

@Adam Abdel-Hafez thanks for the recommendation. I will reach out to Citiside as well.

As it so happens, I am looking for a licensed GC in Atlanta to help with some rehab. If you might be interested in that kind of work I would like to connect with you and discuss potentially working together.

Sounds great @John Figueiredo, will do.

Hey @John Figueiredo that is a fair point. For a large complex I imagine that kind of thing is unavoidable. Since I am looking at a smaller property than you I hope I can keep my renters very happy (within reason) and I want a PM that knows how to deal with tenants in a fair and compassionate manner which will hopefully make them act reasonable.

However, even Yelp reviews can be faked. Definitely the best thing would be to get a referral from a fellow investor. :)

Best of luck!

Also John I will add that I am currently in the process of contacting the following vendors (found on Yelp):

• Rent Appeal: https://www.yelp.com/biz/rent-appeal-atlanta
• Property Services of Atlanta: https://www.yelp.com/biz/property-services-of-atlanta-marietta
• DHC Property Management: https://www.yelp.com/biz/dhc-property-management-atlanta

@John Figueiredo if that is this company https://www.yelp.com/biz/meridian-property-managem... they seem to have pretty bad Yelp reviews. I don't want to hijack your thread but I am also looking so let me chime in as well if you don't mind.

I am also looking for a great property manager in Atlanta (in the city). For me this would (at first) only be for a duplex and it would include leasing and management. I'm still shopping around and not sure about fees at this level. I also need someone I can work with remotely. I'm especially interested in referrals from other investors. Please either post here or reach out directly if you have a recommendation or want to connect and discuss.

Hi @John Figueiredo I am in the process of getting to know a broker in Atlanta so maybe follow up w/ me next week and I can give more insight and potentially a recommendation? Happy to connect w/ you.