| My friend, it is extremely important that you protect | | | | If they don't find any assets in your name (and there |
| your assets. | | | | is noother apparent deep pocket ), they probably |
| It is my obligation to give you all the information you | | | | won't take thecase. |
| needto 'Cover Your Assets' in all real estate | | | | As you can see, appearing broke is the |
| transactions. | | | | bestlawsuit-repellent money can buy |
| I want to give you a secret that has kept me and | | | | There is another problem with owning real estate in |
| thousandsof other investors out of trouble. | | | | your ownname. |
| It is insanely simple to protect yourself from | | | | If a judgment is obtained against you and filed in any |
| frivolouslawsuits and it doesn't cost you a dime more. | | | | county inwhich you own real estate, all real estate in |
| It's my great pleasure to introduce you to a great | | | | that county willhave a lien attached to it. You cannot |
| colleague ofmine. | | | | sell or refinance anyproperty in that county, since no |
| William Bronchick, CEO of Legalwiz Publications, is a | | | | title insurance company willguarantee a clean title. |
| Nationally-known attorney, author, entrepreneur and | | | | You're stuck until you pay off the lien. |
| speaker. | | | | Some people use a corporation or limited liability |
| Mr. Bronchick has been practicing law and real estate | | | | company tohold title to their real estate. |
| since 1990,having been involved in over 700 | | | | While these entities will protect you, they will not |
| transactions. He has trainedcountless people all over | | | | protectyour property. |
| the Country to become financiallysuccessful. | | | | If you own all of your properties in one corporation, |
| I want to share an article that William wrote that | | | | a judgmentagainst the corporation will create a lien |
| says it all. | | | | on all property ownedby the corporation. |
| Here he is, the one and only William Bronchick: | | | | Furthermore, the directors and officers of a |
| There are over 80 million lawsuits filed every year in | | | | corporation are publicrecord, so a corporation will not |
| the | | | | hide your ownership. |
| United States. Landlords and real estate investors | | | | The solution for holding title to real estate is a land |
| areespecially susceptible to liability. | | | | trust. Aland trust is a revocable, living trust used to |
| Are you a target? | | | | title ownershipof real estate. |
| Are your assets easy to locate? | | | | Title to the property is held in the name of a trustee, |
| Is your real estate titled in your name? | | | | who isforbidden to reveal the beneficial owner. |
| You wouldn't walk around with a financial statement | | | | The beneficial owner or beneficiary can be an |
| taped toyour forehead would you? | | | | individual,corporation or other entity for further |
| So why would you have your most valuable assets | | | | protection. |
| exposed topublic scrutiny? | | | | Land trusts were first used in Illinois, hence the |
| Anyone can go down to the county courthouse or | | | | nickname, |
| recorder's officeand look up the owner of any | | | | Illinois Land Trust. In nine states (AL, FL, GA, HI, IL, |
| property. | | | | IN, |
| Real estate records are now computerized, so all of | | | | ND and VA), land trusts are specifically recognized by |
| your realestate holdings can be located at the touch | | | | statute. |
| of a button | | | | In most other states the validity of land trusts are |
| Any mortgages on your property will be recorded as | | | | supportedby common law and general trust principles |
| well. Mostrecorded mortgages will state the amount | | | | (land trusts are notrecognized in TN & LA). |
| of the originalprincipal balance and the date the | | | | A land trust, if properly setup and implemented, will |
| mortgage payments began. | | | | hide yourname from the public records. No one will |
| All one has to do is figure out the balance of your | | | | know who owns theproperty but you, your attorney |
| mortgage andsubtract that amount from the market | | | | and the trustee. |
| value of your house. | | | | If a judgment is entered against you, a lien will |
| Bingo Now they know how much equity you have | | | | notautomatically attach to the property, since title is |
| and hence whethersuing you is worthwhile. | | | | not in yourname. |
| If a tenant or creditor is contemplating suing you, he | | | | A transfer of realty into a land trust virtually no |
| will makean appointment with a lawyer. Unless he can | | | | income taxconsequences. A land trust is considered a |
| afford an attorneyby the hour ($150 and up), he will | | | | revocable grantortrust under the Internal Revenue |
| likely seek acontingency-fee lawyer. | | | | Code, so it does not require aseparate tax |
| A contingency-fee lawyer does not charge by the | | | | identification number or income tax return. Thus,you |
| hour; he chargesa percentage of whatever he | | | | continue report the property for income tax |
| collects. Most contingency-feelawyers will not take a | | | | purposes asthough you still own it. |
| case unless there is something uponwhich to collect. | | | | Furthermore, a transfer of property into a land trust |
| If you have no real estate in your name, then finding | | | | will notusually trigger the due on sale clause of your |
| out yourownership interest will not be easy for a | | | | mortgage. |
| typical lawyer. It'snot that lawyers are lazy. It's simply | | | | So What are your waiting for? |
| a matter of allocation ofresources; lawyers focus on | | | | Get that Property Out of Your Name! |
| cases they can win and collect. | | | | |