Thank you for sharing this very valuable and useful strategy! Your generosity and educational contributions are greatly appreciated by many real estate professionals! ❤
I just learned something new from another channel: UTMA. Then Google led me to learn the difference between UTMA & UGMA. Will you make a video for your subscribers? It compliments this topic.
I would recommend setting up a free consultation to talk about some strategies and how they apply to your unique situation. Sign up here: aba.link/9e53cd
So I am in Tampa Fl. A company out of state set up LLC for me. That was the end of them. How do I use it? I can’t find anyone to help with LLC protection fillings or tax info. I am told by company that set up LLC I need to file something, I don’t know what or to whom. Is there anyone that can help with that. Really help me set it up properly. Add what needs to be in to it.? Help with tax filings? And other required fillings?
Toby - Thank you so much for sharing such valuable lessons. I enjoy your videos. Question: I recently put my residential property into a RLT. i have one rental property. Should I put the rental property in a separate RLT and assign beneficial interest to an LLC? I live in Maryland and the property is also in MD. Does a regular revocable living trust work same as land trust for a rental? Thank you.
So- just to clarify. I currently own multiple rentals in my own name. Several were part of 1031 exchanges. The best protection, according to this video is move them in a land trust each, have separate LLC’s as the beneficiaries and then move those LLCs k to an umbrella WY LLC? If the properties are originating in my name, I’m confused on how my identity is protected. Seems it would be easy to trace?
Love you guys! Guess I'm a closet tax nerd. I keep taking my real estate classes on taxes. Is the Wyoming Statutory Trust labeled as an LLC? I'm one of your TN platinum clients and just set up my LLC but was thinking it was my holding company and should have been a WST.
We need more tax nerds:-) A Wyoming Statutory Trust is very similar to an LLC in that it can pick how it will be taxed:-) In TN, your biggest thing it to avoid the Franchise Tax with the family owned non-corporate entity exception. So long as you are careful, you save a ton.
@@TobyMathis thank you for your reply. I own two commercial rental buildings and a house. I have the house in a trust. Should I place each building into their own trust and drop them into LLCs like you did in your demonstration?
Great but what about someone starting off in RE investing? If I put my first rental property in an LLC, how is that going to hurt or help me when trying to qualify for a mortgage on a second or third investment property? Most lenders probably will not want to lend to such a person. Can investors get a portfolio loan with several properties in an LLC?
You can always get a loan and then transfer the RE - there are also lenders we work with who do asset only loans on investment properties. If you are getting private loans, it will not hurt you at all to have your properties in LLCs when you apply for additional loans - at least I have never seen it hurt anyone and I have hundreds of properties of my own as well as thousands of RE investor clients. Portfolio loans are almost always necessary when you are on over 10 loans - so, yes, you can certainly get a portfolio loan on multiple properties in an LLC, although most portfolio loans I have worked on actually encumber the LLC:-)
Hi Toby, thank you for your informative videos! I just recently bought a rental property out of state and wanted to know how to set up a LLC. Do I set up in Hawaii or where the property located? Can you pls provide me feedback?
Great question, to assist you further, I highly recommend you request a free 45-minute consultation to discuss this with my team so we can provide you with an answer that is unique to your situation. Visit: aba.link/9e53cd
Great question, in order to assist you further, I highly recommend you attend our Free Tax & Asset Protection Workshop where our attorneys and specialists will answer all your questions live at the virtual event. aba.link/gdf
You are kind. Yes, you will want to separate your wholesaling from rental activities. Wholesaling is actually an active trade or business - so I generally recommend wholesalers use an S or C corp or LLC taxed as an S or C corp. Always separate your active businesses from your investments:-) We do teach tax and asset protection classes for free. There should be some links on my page.
thank you for sharing, if you have multiple properties how would you go ahead and set up a protection layer like. would you create a single trust and LLC for each property or is there a different strategy for multiple properties.
Thank you for your question! It's great to see you engaging with the content and thinking about asset protection. I recommend setting up a free consultation to discuss some strategies and how they apply to your unique situation. Sign up here: aba.link/9e53cd
Hello Toby and thank you for this one. I remember the land trust and LLC usage for protection purposes from another video of yours, but it's been good to have it here in a short version. During your tax monday events, are they focussed onto a specific theme only, or are they for all tax related questions? Friendly Greetings.
Tax Tuesdays:-) We always answer 10-15 emailed questions and a bunch of others. It is open to all topics. Every now and again we do a special Tax Tuesday on bookkeeping. Feel free to email in any question at TaxTuesday@andersonadvisors.com - we try to answer them all.
Thank you so much for your question! We highly recommend you join us at our next Free Tax & Asset Protection Workshop Livestream. Our attorneys and specialists will answer all your questions at no additional cost. Save Your Seat: aba.link/taptoby
Great video. Need clarification: in California, we have living trust - are they included as part of Trusts in your video? It is not a Land Trust. Thank you.
I appreciate your support for the video. However, for a more tailored response to your specific situation, I recommend a free strategy session. aba.link/9e53cd
This is a great demonstration & easy to understand. One question, who would be the trustee of each trust? Is it you personally or another anonymous LLC that serves soley as a trustee for all trusts? As for the beneficiary I’m assuming when you invest in different states, the beneficiary entity would be an llc formed in the specific state the property is located in which all of them are owned by the 1 holding company?
What kind of lawyer do we look for to do the land trust and llc? I bought two homes in Texas for my daughters to live in and right now I live in Florida. What would the approximate cost for this. Thanks
Absolutely but we recommend speaking with one of our advisors for any further legal advice. Here is the link to schedule a free strategy session: aba.link/tobyss. Or you may call to speak with an advisor at our toll-free line, 800-706-4741.
You can transfer after closing if you have a personal loan on the property. On personal loans, the lenders do not generally allow you to close in an entity.
Toby what about if I have a rental that is paid off but its in my wife and my name but would like to transfer the rental to an LLC as a disregarded entity. Is this possible?
Don't want to advise you via RUclips:-) Feel free to reach out to our offices for a 1-on-1 consult - but generally speaking, in Florida, a Fl land trust would work for a Florida investment property because Florida has a very strong trust statute. For outside liability, you might layer in an LLC. Maybe WY - Maybe FL - but it really depends on your facts and circumstances.
Great video! If you have a house in a trust but not LLC. Is it difficult to modify the Trust to put it into an LLC? For example: The State of Hawaii. I believe you also, stated that in some states just the Trust is adequate without the LLC? Thank you
That is a complicated question that would require you to go over the details with a professional. Here is the link to schedule a free strategy session: aba.link/tobyss. Or you may call to speak with an advisor at our toll-free line, 800-706-4741.
Great information! can/should the rental property be held in a separate LLC than the one that the renters pay rent to? in other words, can the property LLC own the property and another LLC collect the rent on the property?
Absolutely. It would be acting as the property manager. Keep in mind the tenant can only see the name on title, which in my example was the land trust. They never even see the LLC unless they sue.
But how does this work when you are getting a traditional loan? most loan companies won't want to put the loan in a company name but in the name of the buyer. Unless the house it paid off of course then doesn't matter at that point.
@@TobyMathis oh thats interesting. ok heres my next question. If you transfer it to a "trust" does it still show the owner (me) in the real property search with my address or will it show the name of the trust with whatever address is associated with that?
Have a lawyer in YOUR STATE do this. Each state has diff laws, and the last thing you want to do is have your bank or mortgage company call your loan because you improperly transferred ownership.
Great video. I was just wondering if you have any strategies for avoiding the CA Prop 19 reassesment that triggers a reassesment to market value on investment properties going from parent to child. It only excludes the primary residence of the parents if the child makes the property a primary residence and would reasses to market value if the child rents out the property later.
We have an article that might help you explore CA Prop 19 more. At the end there is a video you can watch to further expand your knowledge on the subject. andersonadvisors.com/prop-19/
Portfolio lenders actually prefer LLCs. Conventional lenders will not want to make the loan to the LLC - they will make the loan to you and then you transfer into the LLC or, in some cases, into a land trust where the beneficiary is an LLC. Great question.
If your a non-resident of a state where the home resides and that states has an income tax, does a WY holding company get around paying that income tax?
This is a great video, I learn a lot watching your videos and it has been helpful to me. Building a steady income is quite difficult for newbies.. Thanks to Mrs. Patricia Smale for improving my portfolio. keep up with the good videos.
Great question, in order to assist you further, I highly recommend you request a free 45-minute consultation to discuss our proven asset protection and tax strategies and how they apply to your unique situation. aba.link/tobyss
You always use both. Umbrellas do not provide anonymity, help with legacy or protect your assets - they are secondary coverage to other insurance. @@user-pf3ow1tu3f
I have 9 properties in my name. I want to hold them so i can get protection. I also want to set up estate planning with some sort of trust so my beneficiaroes inherit my assets in some sort of trust. My beneficiaries have mental health issues, and it would not be beneficial for assets to pass to them. I dont know where to start.
Valerie - I'm no lawyer but I'd recommend an "Incentive Trust". You can word you trust so your beneficiaries must meet certain conditions or requirements before they are to receive anything out of your trust. You'll have to have a successor trustee who can determine if your beneficiaries meet these requirement, which may be a financial institution (fees involved) or a designated person. I have an Incentive Trust for my kids and they will have to meet certain requirements before they get anything from my estate. Hope this helps!
@@travelguy1564 if it is living trust, then i think there wont be an asset protection.. Is it good idea to put the assets in llc then that llc to trust ...llc will give asset protection and trust will provide no probate..
Great question. So the structure for asset protections would follow what I did in the video, but the estate plan would need "special needs" provisions to ensure that the assets are managed correctly and to avoid distributions that would cause a beneficiary to lose any state or federal assistance. While this sounds complicated, it is actually fairly common. The last thing you want is to harm a beneficiary or put them in a position of losing assistance. Please reach out of you need anything. Happy to help...and kudos for being a good steward of your wealth.
That's a great goal to have at such a young age! The best place to start is by becoming a Free Basic member of Infinity Investing. You can learn the basics of creating long-term wealth. Visit: infinityinvesting.com/basic-membership-signup/?
Claim Your FREE 45-minute Investment Strategy Session to receive business planning tips and asset protection. 👉 aba.link/9e53cd
😅
I've watched 20-30 videos on this channel over the past month and the education is unbelievable. Imagine what his clients are getting.
Thank you for sharing this very valuable and useful strategy! Your generosity and educational contributions are greatly appreciated by many real estate professionals! ❤
Glad you enjoyed it!
Toby a big homie
Always sharing top of line knowledge
I could listen to you all day. Explained exactly so I can understand & so informative. Thank you!
Glad it was helpful!
I just learned something new from another channel: UTMA. Then Google led me to learn the difference between UTMA & UGMA. Will you make a video for your subscribers? It compliments this topic.
Absolutely - I will add it to my list of topics. Thank you for the response:-)
@@TobyMathis thank you for sharing knowledge.
Excellent topic, thank you.
What will be the steps to start:
Form an LLC and start putting property there first?
Create living trust next and name LLC beneficiaries?
Great video!
I would recommend setting up a free consultation to talk about some strategies and how they apply to your unique situation. Sign up here: aba.link/9e53cd
So I am in Tampa Fl. A company out of state set up LLC for me. That was the end of them. How do I use it? I can’t find anyone to help with LLC protection fillings or tax info. I am told by company that set up LLC I need to file something, I don’t know what or to whom. Is there anyone that can help with that. Really help me set it up properly. Add what needs to be in to it.? Help with tax filings? And other required fillings?
So loving it it open my brain to the deepest
Toby - Thank you so much for sharing such valuable lessons. I enjoy your videos.
Question: I recently put my residential property into a RLT.
i have one rental property. Should I put the rental property in a separate RLT and assign beneficial interest to an LLC? I live in Maryland and the property is also in MD. Does a regular revocable living trust work same as land trust for a rental?
Thank you.
So- just to clarify. I currently own multiple rentals in my own name. Several were part of 1031 exchanges. The best protection, according to this video is move them in a land trust each, have separate LLC’s as the beneficiaries and then move those LLCs k to an umbrella WY LLC?
If the properties are originating in my name, I’m confused on how my identity is protected. Seems it would be easy to trace?
Love you guys! Guess I'm a closet tax nerd. I keep taking my real estate classes on taxes. Is the Wyoming Statutory Trust labeled as an LLC? I'm one of your TN platinum clients and just set up my LLC but was thinking it was my holding company and should have been a WST.
We need more tax nerds:-) A Wyoming Statutory Trust is very similar to an LLC in that it can pick how it will be taxed:-) In TN, your biggest thing it to avoid the Franchise Tax with the family owned non-corporate entity exception. So long as you are careful, you save a ton.
Question: did you put the three separate trusts into three separate LLCs?
Yes I did.
@@TobyMathis thank you for your reply. I own two commercial rental buildings and a house. I have the house in a trust. Should I place each building into their own trust and drop them into LLCs like you did in your demonstration?
Great content!
Thank you
Great but what about someone starting off in RE investing? If I put my first rental property in an LLC, how is that going to hurt or help me when trying to qualify for a mortgage on a second or third investment property? Most lenders probably will not want to lend to such a person. Can investors get a portfolio loan with several properties in an LLC?
You can always get a loan and then transfer the RE - there are also lenders we work with who do asset only loans on investment properties.
If you are getting private loans, it will not hurt you at all to have your properties in LLCs when you apply for additional loans - at least I have never seen it hurt anyone and I have hundreds of properties of my own as well as thousands of RE investor clients.
Portfolio loans are almost always necessary when you are on over 10 loans - so, yes, you can certainly get a portfolio loan on multiple properties in an LLC, although most portfolio loans I have worked on actually encumber the LLC:-)
Hi Toby, thank you for your informative videos! I just recently bought a rental property out of state and wanted to know how to set up a LLC. Do I set up in Hawaii or where the property located? Can you pls provide me feedback?
Great question, to assist you further, I highly recommend you request a free 45-minute consultation to discuss this with my team so we can provide you with an answer that is unique to your situation. Visit: aba.link/9e53cd
For educational purposes would you suggest Wyoming over Delaware?
Great content! Would you recommend structuring the llc taxed as a c-corp for loan purposes? Thanks!
Great question, in order to assist you further, I highly recommend you attend our Free Tax & Asset Protection Workshop where our attorneys and specialists will answer all your questions live at the virtual event. aba.link/gdf
Great video! Do you separate your LLC? FROM rentals & wholesale?? If that makes sense for the structure
You are kind. Yes, you will want to separate your wholesaling from rental activities. Wholesaling is actually an active trade or business - so I generally recommend wholesalers use an S or C corp or LLC taxed as an S or C corp. Always separate your active businesses from your investments:-) We do teach tax and asset protection classes for free. There should be some links on my page.
thank you for sharing, if you have multiple properties how would you go ahead and set up a protection layer like. would you create a single trust and LLC for each property or is there a different strategy for multiple properties.
Thank you for your question! It's great to see you engaging with the content and thinking about asset protection. I recommend setting up a free consultation to discuss some strategies and how they apply to your unique situation. Sign up here: aba.link/9e53cd
Hello Toby and thank you for this one. I remember the land trust and LLC usage for protection purposes from another video of yours, but it's been good to have it here in a short version.
During your tax monday events, are they focussed onto a specific theme only, or are they for all tax related questions?
Friendly Greetings.
Tax Tuesdays:-) We always answer 10-15 emailed questions and a bunch of others. It is open to all topics. Every now and again we do a special Tax Tuesday on bookkeeping. Feel free to email in any question at TaxTuesday@andersonadvisors.com - we try to answer them all.
Ok I own some Rentak properties...im not sure about LLC trust ect...who do I get professional help on this topic?
Is it possible to obtain a HELOC on an investment property that has already been placed in a living trust ?
Yes, but they will likely ask you to remove the property at closing and then reconvey just to show you have control of the property.
Thank you for your value. I have a question: Does mean that i should not elect as S-Corp for taxes only?
Thank you so much for your question! We highly recommend you join us at our next Free Tax & Asset Protection Workshop Livestream. Our attorneys and specialists will answer all your questions at no additional cost. Save Your Seat: aba.link/taptoby
Thank you, Toby.
Great video. Need clarification: in California, we have living trust - are they included as part of Trusts in your video? It is not a Land Trust. Thank you.
I appreciate your support for the video. However, for a more tailored response to your specific situation, I recommend a free strategy session. aba.link/9e53cd
This is a great demonstration & easy to understand.
One question, who would be the trustee of each trust? Is it you personally or another anonymous LLC that serves soley as a trustee for all trusts?
As for the beneficiary I’m assuming when you invest in different states, the beneficiary entity would be an llc formed in the specific state the property is located in which all of them are owned by the 1 holding company?
You are correct about the LLCs in the state where the property is held. We use an anonymous LLC or an attorney as the Trustee.
What kind of lawyer do we look for to do the land trust and llc? I bought two homes in Texas for my daughters to live in and right now I live in Florida. What would the approximate cost for this. Thanks
I want to buy a couple properties and not be On the title. Can you guys help me out?
Absolutely but we recommend speaking with one of our advisors for any further legal advice. Here is the link to schedule a free strategy session: aba.link/tobyss. Or you may call to speak with an advisor at our toll-free line, 800-706-4741.
Great information. Thank you.
Glad it was helpful!
Do you have to transfer your property by closing at a mortgage company?
You can transfer after closing if you have a personal loan on the property. On personal loans, the lenders do not generally allow you to close in an entity.
Toby what about if I have a rental that is paid off but its in my wife and my name but would like to transfer the rental to an LLC as a disregarded entity. Is this possible?
Love your videos! What if we live in VA, own a rental in FL. Do we do a Trust in state of FL, and an LLC in FL as well? Doc fees in FL? Thank you!
Don't want to advise you via RUclips:-) Feel free to reach out to our offices for a 1-on-1 consult - but generally speaking, in Florida, a Fl land trust would work for a Florida investment property because Florida has a very strong trust statute. For outside liability, you might layer in an LLC. Maybe WY - Maybe FL - but it really depends on your facts and circumstances.
Great video! If you have a house in a trust but not LLC. Is it difficult to modify the Trust to put it into an LLC? For example: The State of Hawaii. I believe you also, stated that in some states just the Trust is adequate without the LLC? Thank you
Fairly easy fix in most cases.
Thanks amazing info
My pleasure! 😄
LLC vs umbrella policy. Which one is better if i only own one rental property..?
That is a complicated question that would require you to go over the details with a professional. Here is the link to schedule a free strategy session: aba.link/tobyss. Or you may call to speak with an advisor at our toll-free line, 800-706-4741.
Great information! can/should the rental property be held in a separate LLC than the one that the renters pay rent to? in other words, can the property LLC own the property and another LLC collect the rent on the property?
Absolutely. It would be acting as the property manager. Keep in mind the tenant can only see the name on title, which in my example was the land trust. They never even see the LLC unless they sue.
But how does this work when you are getting a traditional loan? most loan companies won't want to put the loan in a company name but in the name of the buyer. Unless the house it paid off of course then doesn't matter at that point.
You get the loan personally, then transfer to the land trust after the loan closes. Done it thousands of times.
@@TobyMathis oh thats interesting. ok heres my next question. If you transfer it to a "trust" does it still show the owner (me) in the real property search with my address or will it show the name of the trust with whatever address is associated with that?
Have a lawyer in YOUR STATE do this. Each state has diff laws, and the last thing you want to do is have your bank or mortgage company call your loan because you improperly transferred ownership.
Great video. I was just wondering if you have any strategies for avoiding the CA Prop 19 reassesment that triggers a reassesment to market value on investment properties going from parent to child. It only excludes the primary residence of the parents if the child makes the property a primary residence and would reasses to market value if the child rents out the property later.
We have an article that might help you explore CA Prop 19 more. At the end there is a video you can watch to further expand your knowledge on the subject. andersonadvisors.com/prop-19/
Maybe tell your followers both pros & cons (I.e., sales taxes, annual separate tax returns, etc)
some say insurance is good liability protection,what do you say?
If you have your investment real estate in an LLC, what impact does this have on using conventional financing?
Portfolio lenders actually prefer LLCs. Conventional lenders will not want to make the loan to the LLC - they will make the loan to you and then you transfer into the LLC or, in some cases, into a land trust where the beneficiary is an LLC. Great question.
Thank you
My pleasure!
Next time can you make video show how to open LLC.
Great suggestion, I will consider it for a future video.
If your a non-resident of a state where the home resides and that states has an income tax, does a WY holding company get around paying that income tax?
Your WY Holding Company is disregarded to you for tax purposes, so it does not file any Federal or State Tax returns.
This is a great video, I learn a lot watching your videos and it has been helpful to me. Building a steady income is quite difficult for newbies.. Thanks to Mrs. Patricia Smale for improving my portfolio. keep up with the good videos.
Am I able to "convert" a property that is currently in my name to an LLC?
Can a multifamily in RI with an LOC be switched to an LLC or Trust without upsetting the LOC with the bank?
Did you own the apartment as an individual? Most lenders on multifamily require the LLC - it should not be an issue.
How do I have a zero tax return requirement as you mentioned?
Great question, in order to assist you further, I highly recommend you request a free 45-minute consultation to discuss our proven asset protection and tax strategies and how they apply to your unique situation. aba.link/tobyss
is it good for a time share?
Deeded timeshares - yes. But it may not be practical if you are only using for personal use.
How about paying an umbrella ( insurance) for protection.
Umbrella insurance is not a one-size fits all solution, which we talk about in our free workshop here: aba.link/taptoby
You always use both. Umbrellas do not provide anonymity, help with legacy or protect your assets - they are secondary coverage to other insurance. @@user-pf3ow1tu3f
How much does it cost to acquire your services ?
I recommend setting up a free strategy session to discuss our services that best fit your needs. aba.link/9e53cd
I have 9 properties in my name. I want to hold them so i can get protection. I also want to set up estate planning with some sort of trust so my beneficiaroes inherit my assets in some sort of trust. My beneficiaries have mental health issues, and it would not be beneficial for assets to pass to them. I dont know where to start.
Valerie - I'm no lawyer but I'd recommend an "Incentive Trust". You can word you trust so your beneficiaries must meet certain conditions or requirements before they are to receive anything out of your trust. You'll have to have a successor trustee who can determine if your beneficiaries meet these requirement, which may be a financial institution (fees involved) or a designated person. I have an Incentive Trust for my kids and they will have to meet certain requirements before they get anything from my estate. Hope this helps!
@@travelguy1564 if it is living trust, then i think there wont be an asset protection..
Is it good idea to put the assets in llc then that llc to trust ...llc will give asset protection and trust will provide no probate..
Great question. So the structure for asset protections would follow what I did in the video, but the estate plan would need "special needs" provisions to ensure that the assets are managed correctly and to avoid distributions that would cause a beneficiary to lose any state or federal assistance. While this sounds complicated, it is actually fairly common. The last thing you want is to harm a beneficiary or put them in a position of losing assistance. Please reach out of you need anything. Happy to help...and kudos for being a good steward of your wealth.
How do i get a Heloc if my rental is in a Trust?
I recommend registering for a complimentary consultation with my team. We'll tailor our advice to your specific needs. Sign up here: aba.link/9e53cd
You cannot do a heloc if it’s a rental. Only primary
Hey toby I’m 17 and I want to be financially free and have my renters pay for my life can you give me a guide of what I should do?
That's a great goal to have at such a young age! The best place to start is by becoming a Free Basic member of Infinity Investing. You can learn the basics of creating long-term wealth. Visit: infinityinvesting.com/basic-membership-signup/?
@@TobyMathis I don’t see any free stuff it all leads to courses I have to pay for?
❤❤❤
💎💎
If courts in the US were less fucked up, you wouldn't have to do this hokey-pokey. :(
Agreed.
And people complain about students not owning their own risk. 🙄😏
Tony how do I contact you. E mail?
You can get in contact with us by setting up a free strategy session. Visit: aba.link/9e53cd
Súper.oke.fratelo.