All Forum Posts by: Mike S.

You can create a land trust where you are the initial beneficiary. You then special warranty deed the property to the land trust. The Garn St Germain Act will protect you against the due on sale clause. You will then assign the beneficial interest of the land trust to your LLC. That assignment being a private unrecorded document, it won't be flagged by your lender.

As a general rule of asset protection, you want to separate entities owning asset from entities operating the asset as each have different liabilities.

The concept is if you are sued for something that you did (operating), you may loose that entity but there is no asset in it.

It is a strategy used by many restaurants. They even push it further. They have 3 entities. One owns the brand name. One owns the real estate. One is the operating restaurant. If a customer sue for a bad food poisoning or a slip and fall, you may loose the operating entity in the lawsuit. but you can then create a new one the next day but still keeping the same location and same brand name so you won't loose your customer base.

I am getting confused...

Please correct me if I am wrong but my understanding was:

A warranty deed is a deed where the prior owner states to the new owner he has a bundle of right and transfers it to the new owner.

A quit claim deed, is a deed where the prior owner just states that he transfers his rights of the property without claiming that he has any.

In the first case, you can sue the prior owner if some rights are later found not valid, in the second case you can't as no statement of ownership of any rights was made.

The title insurance is independent of the deed. You may or may not pay for a title insurance. If there is any cloud on the title that was not found during the title search, that insurance may come in play later on. It is a protection for the buyer. But with or without insurance, you can still sue the prior owner with a warranty deed. In theory I don't see why you couldn't buy a title insurance for a property transferred with a quit claim deed. That is probably stupid, but not impossible.

However, as a seller, if you sign a warranty deed to the buyer, you probably better have your prior title insurance when you bought it initially as you can rely on it to protect you if the buyer later sue you for a problem.

Lender will also require a title insurance to protect their interest.

I would have however no issue to transfer one of my property to one of my LLC with a warranty deed or special warranty deed without taking any title insurance. If a cloud on the title appears later, I can always have my LLC sue myself so I can then rely on my initial title insurance to take care of the problem.

To my knowledge there is no cost difference between a quit claim deed and a warranty deed...

I am quite sure that there was a change in the law a few years ago that now allows entity to act as trustee. That is one of the document I am looking for.

I have a few books in my storage that I haven't check yet that may have some answers. I'll try to look for them in the next days.

Can someone point me to the statute or documents explaining the requirements that should be met by a trustee of a Florida Land Trust (F.S. 689.071) who is not a natural person (ie LLC, Corp, trust, etc...).

I remember reading about it but can't find it anymore.

I don't remember if the requirements were the same as for a regular trust under chapter 736 and if the insurance, license and bonding were required for a Florida or out of state LLC acting as trustee of a Florida land trust.

The initial beneficiary should be you if you want to get the Garn St Germain Act protection. But the beneficiary will only be listed in your private land trust document. You can always later assign the beneficial interest to an LLC.

The trustee however will probably be listed on the deed that is a publicly recorded document.

I agree with @Patrick M Nichols, piercing the veil is independent of the type of LLC.

The benefit of multi-member LLC vs single member is for the charging order protection that could be different in some state. It is a different concept.

With this book you will have all you need to setup properly your quickbooks for your rentals. There are also files to download with the book to import some configuration settings directly.

Most counties have court case record search. You can search the probate cases under that name.

To read the full case you will need a subscription, but most header records access are free.

watch all the videos on the youtube channel from Clint Coons, he has very good instructional videos on all these concepts and his suggestions are in line with what I eventually did after seeking multiple advices. It is not the only way to do it, but it is the one that made more sense to my situation.