Mr. Land Trust® expands on some of the many reasons to use a Trust to hold title to your real estate:

Reason #1: There are hundreds of thousands of lawsuits filed every year in America.

Many of these lawsuits are filed against the owners of real estate because they are easy prey for contingency fee lawyers and their deadbeat clients looking to make a quick buck off honest hard-working real estate investors. (I read about one investor who bought a vacant lot and signed personally for the financing. The buyer discovered after the purchase that the site had been a gas station with underground gas storage tanks that polluted the ground. The EPA was a constant threat. The buyer stopped making payments on his bank loan and now the bank is foreclosing).

Reason #2: You are buying a Pure Option or entering a Lease-Option.

You could enter an Installment Contract where fee title will remain in the seller’s name until full payment is made to satisfy the terms of the contract purchase.  

Your concern is that by the time you have created enough value added to the property to sell for a profit, the owner (the title-holder) may have done something stupid to cloud the title such as filed bankruptcy, had a lien recorded against him/her, made repairs that resulted in a mechanics lien, gotten divorced, borrowed against the property, signed a long-term lease for under market rents, etc. 

You can’t prevent problems like these from cropping up. What you can do i ... Read More…