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