Personal Property Trust
The personal property trust is one of the best kept secrets in real estate investments. It is simple and easy to use and not understood in the investment world. We use it on a regular basis in our land trust activities and courses. There may not be an address for the trustee or any other contact information. There is no registered agent required or state registration that we know of.
The personal property trust can be the trustee of a land trust or a personal property trust. It is a revocable, grantor trust similar to a land trust. It has many of the same benefits and liabilities. It does not have a taxpayer ID number or bank account. It does not avoid any legal responsibilities for owning, maintaining and complying with all laws and regulations. It does however reduce contact from tenants, code enforcement, tradesmen, sales people and other disturbances that are not important.
The manager of an LLC can be a personal property trust. The name of the manager will not appear on the public records of most states that I know of. The LLC has benefits that can be important to real estate investors. It is a good entity for property management. Whether a single member or multiple number, they are both on the public record listing the managing member. This is a major drawback for LLC's, in addition to the cost.
The personal property trusts can hold title to notes, deeds of trusts, mobile homes, autos, boats, aircraft, securities, precious metals, guns, and any other item of personality. In many states, other rights in real estate such as leases, easements, air rights, and more are best held in a personal property trust. . It is a very effective firewall and spam filter.
There is a book covering the topic written by attorney Mark Warda, my friend and partner. It has a thorough discussion on the topic and forms. It is available at: GaltPress.com
Jack, I need you to speak on a NoteConference Webinar regarding holding properties owned free and clear in a trust!
Mike, I would be happy to discuss options with you for the note business and trusts for holding free and clear properties. The checkbook control trust can hold notes and real estate and deliver privacy and safety.