Best Entity for Investing In Real Estate - (LLC, Land Trust or Corp?)

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Best Entity for Investing In Real Estate - (LLC, Land Trust or Corp?)

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Toby Mathis Esq | Tax Planning & Asset Protection

Күн бұрын

Best Entity for Investing In Real Estate - (LLC, Land Trust or Corp)
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If you're in real estate, you better be dealing with somebody who actually owns real estate and understands the nuances, otherwise, they're gonna read out of a book or they're gonna readout of a case and they're gonna try to tell you to do something that may not be practical at that time, 'cause it is fluid, it moves around.
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20 years ago you could close a commercial property in your individual name. You can't do that anymore after the big fiasco in 2008, they don't want to be exposed to your personal stuff, and so almost always if you're dealing with a commercial property you're gonna be closing an LLC.
This is absolutely the case 'cause if you have the financing they will not even do financing any more for the individual. You'll be a guarantor, but they'll almost always make it be an entity. So this is really important because little distinctions like that can have a major impact on your planning.
📺 WATCH the video to learn how to Preserve, Protect & Prosper!
00:00:52 - Knowing who you're dealing with when it comes to real estate investing
00:01:18 - closing with commercial property
00:02:22 - intermediary entity to mitigate the risk of having that note called due.
00:03:11 - the land trust is number one, people misuse them, they don't understand exactly what they are.
00:06:01 - Buying and holding using an LLC which stands for limited
liability company.
00:06:14 - An LLC exists for state law
00:10:41 - 00:10:46 - Land trust plus an LLC for rental real estate
00:16:25 - 00:16:31 The corporation a tax designation, so
I could be a corporation [00:16:34.02] or I could be an LLC
taxed as a corporation.
00:16:49 - Active real estate
00:16:55 - wholesale
00:16:59 - flips
00:17:03 - real estate agent
00:18:38 - LLC and 1031 exchange
00:18:52 - LLC taxed as a corp
00:18:57 - flipping properties
00:19:06 - buying and holding property
00:20:46 - LLCs for the holds
00:20:51 - S corp for your flips or possibly a C corp
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ABOUT TOBY MATHIS
Toby Mathis, Esq. is the best-selling author of Infinity Investing: How the Rich Get Richer And How You Can Do The Same. Toby is a tax attorney and founded Anderson Business Advisors, one of the most successful law, tax, and estate planning companies in the United States. Learn more at aba.link/tobyaba
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice. of the information contained herein without seeking professional legal advice.

Пікірлер: 264

@TobyMathis 2 жыл бұрын

@iankingston196 2 жыл бұрын

Great Land Trust assig be to LLC. will use?

@iankingston196 2 жыл бұрын

thanks for i dotax sesignatuo. labs trust.

@nsburden 3 жыл бұрын

I’ve been researching these different entities for months now and your video is by far the most clear, comprehensive and informative one I’ve come across. Thank you so much! And your right, just like any real estate agent or accountant you work with, your legal advice should come from someone who is also an investor.

@bottlersolutions6739 2 жыл бұрын

This level of competence is not on every corner.....I just assume fly him out and give him everything

@Gordon.Collins 4 жыл бұрын

This is life changing information!! I know people who spend thousands of dollars for the information you're giving for free! Thank you for the level of value that you're giving!

@TobyMathis 4 жыл бұрын

Really nice to know you're getting tremendous value from our videos. Thank you for taking time to watch and comment.

@thecme2764 4 жыл бұрын

"If you ever say limited liability corporation in my presence, I'm probably gonna make fun of you" = Pure Gold

@colinoverweg 4 жыл бұрын

With such a straight face hahaha

@laraycolumbus662 4 жыл бұрын

Un yytu tho u you u yo tuuu

@Quo0621 3 жыл бұрын

I cracked up at that. Also the comment about "depending on what you're into...". I could just imagine what was running through his mind when he said that.

@mjedwards5809 4 жыл бұрын

That was the most informative youtube video I've ever seen. Clear, concise, direct.

@touchdownraiders2009 5 жыл бұрын

Thank you Toby. I live in Clark County too. Thanks for being a strait shooter and not filling your videos with fluff. Amazing job with great info. I really appreciate you helping us with this informative video.

@knowledgeworld73x 3 жыл бұрын

By far the most clarity I've received on corporate structure. Thanks

@BryceLane 4 жыл бұрын

Why Does this video not have a million views? Great Content Thank you!

@Michael-st9ky 4 жыл бұрын

Bryce Lane not many people with the mindset

@todosube 3 жыл бұрын

Because only 10% of people are rich and this is the reason the other 90 are poor.. they spent time reading sense less info.

@Tbell5133 4 жыл бұрын

By far one of the best videos this year! Thank you sir!

@jacemoney247 4 жыл бұрын

Amazing

@lazfernandez9120 4 жыл бұрын

Absolutely fantastic information, an excellent and highly knowledgeable gentleman... thanks

@MobileHomeGeek 4 жыл бұрын

This video is on point!!! This video should have more views...this guy just explained the entities so easy a 5 year old can explain

@realestatewith_sabrina 3 жыл бұрын

Thank you for the simplicity of this information. Absolutely love this channel so very informative and simply explained.

@Michael-st9ky 4 жыл бұрын

Love the luggage example. Perfect

@FranciscoSanchez-wy3lh 3 жыл бұрын

I have been reading and watching videos for a week now- and this video answered most of my questions. Thank you!

@BigDaddyGarth 3 жыл бұрын

I have been scouring yours and clints videos. Looking for this exact piece of information. So glad I found it. Land trust > instate LLC > Wyoming LLC. Nice

@mackenzietharpe9335 4 жыл бұрын

Great video! This answered my questions about keeping my name off of the public records so kids mom can’t take me to court for more $$$ (land trust) as well as still staying protected personally (LLC)!!! Thanks so much! Subscribed! Notifications:ALL!!!

@YasserAlhamri 3 жыл бұрын

Thank you I was taking with my attorney and my account. About the same things. And I learned a lot more information from you thank you

@swordfishandtuna 4 жыл бұрын

The fact you can dumb this down to the point a child could understand tells me how much you really know your stuff 👍🏿

@alliesteamc3546 2 жыл бұрын

Thank you very much for sharing very useful education. We appreciate your generosity and caring! May you and your team members be abundantly blessed!🙏😃

@TobyMathis 2 жыл бұрын

Thank you!

@beebclark9663 4 жыл бұрын

As an experienced traveler, your shaving cream analogy was spot on! Mine tends to be the cologne all over toothbrush, bleh. Thanks for incredible advice.

@lashun1st Жыл бұрын

Wow ! 😊 thanks Toby!! This was super informative!!

@tracynguyen4921 3 жыл бұрын

Best information I had ever watched. This video should have a million viewers

@alena725 2 жыл бұрын

Your great at what you do! Thank you for for bringing your insight public

@TobyMathis 2 жыл бұрын

We appreciate hearing that!

@cottondai 4 жыл бұрын

Wow you are amazing Sir. Thank you for sharing all these insider tips.

@grichac3482 3 жыл бұрын

Great video! The protections of an LLC are very good as you describe. The privacy protection isn’t as strong as one might think. If someone is going to come after you for liability or other financial gain, it won’t take a PI long to figure out what you have control or access to.

@jimross2101 3 жыл бұрын

Yes, funny how an "attorney" pushes for an LLC for each property because he stands to profit immensely from forming them. And, a quick look in a county's public records will find the current ownership (maybe an LLC or Corp) and Bingo, likely the previous transfer shows the true owner for the residential real estate. In a liability lawsuit a court can pierce a corporate veil quite legally to boot. Oh yeah, lets talk about the self-employment taxes you'll be paying by switching your income from Schedule E to Schedule C...

@peterelz4600 3 жыл бұрын

wow man - seriously - speechless the knowledge, wisdom and just straight to the point easy to follow saved ten lifetimes worth of mistakes !! thank you brotha !!

@bay707100 4 жыл бұрын

Love this! Scheduled my consultation with you guys here in Las Vegas as a bday present, I owe it to myself to learn more about this

@karinarivas1064 5 жыл бұрын

Can you please make a video on tax strategies for high income earners (nt biz owners, just W2 folks). Is setting up a sole prop LLC to manage family expenses a good strategy? Any others? Thanks a million in advance!

@Scofari 4 жыл бұрын

You can't set up a LLC to manage family expenses. Those are not business expenses. You need to start a business, which can lose money for 7 years

@KAXBENMUSIC 2 жыл бұрын

Finally the video I was looking for. Super well explained. I wish to have the option of multiple likes. Thanks a lot.

@TobyMathis 2 жыл бұрын

Glad it helped!

@pamlinson Жыл бұрын

I am basically clueless to all this, but you are really helping me to sort things out. This is great information and THANK YOU!

@TobyMathis Жыл бұрын

If you ever have any questions, please consider registering for a strategy session with our company. 👍

@onlinebusinessphone3032 Жыл бұрын

Thanks for this info This was very Informative

@selfevidentinc.5266 3 жыл бұрын

excellant!! info i was sued by tenant judgement in my name i switched out property in time , they still tried to attach to my building BUT!!! reached statue of Limitation , but still i had court & attorney cost!!!!as they tried this video is soooo helpful i will be consultaing with you soon

@Mav0585 4 жыл бұрын

I would rather watch this than the super bowl - keep posting!

@TobyMathis 4 жыл бұрын

You got it! Thank you for your comment.

@MrRealtalk84 3 жыл бұрын

Thank you for the great educational session, which was done with a good amount of detail and nuance. You make me want to go nerd out more on this topic for sure now, it’s so good when you have someone like you and your partner giving great value in a video like this. It’s rare, so thanks again.

@Gyan-Merchantry 2 жыл бұрын

One of the most valuable videos out there for real Estate investor

@TobyMathis 2 жыл бұрын

Thank you! We appreciate your comment!

@QuarterBranchFarm 4 жыл бұрын

Toby, you explained that very well. Thank you!

@TobyMathis 4 жыл бұрын

Thank you for the positive feedback. Don't forget to subscribe to our KZfaq channel.

@suntommy1337 4 жыл бұрын

If I could give you 2 thumbs up I would...only could do 1. I am in Arizona are you able to help from Nevada to set up a Land Trust & LLC for our one rental? I see your "schedule a 30 minute strategy session". I am guessing this is to discuss details of what we have and what we foresee as it relates to prospective property ownership? It would be great to know the cost for setting a Land Trust & LLC up in Arizona, in addition to ongoing state fees, tax consequences etc.

@TobyMathis 4 жыл бұрын

We set up entities and land trusts all over the country. Our advisors can give you everything you need in terms of cost and tax consequences to your business.

@bpaige12 3 жыл бұрын

This structure is absolute genius..

@SuperDavidgrace 2 жыл бұрын

Thank you so much. Perfect timing for me.

@XavierIsraelMatamoros 4 жыл бұрын

From Toby's example of putting in multiple bids at about 12:30, he sets up land trust for each (accepted bid) property & names the trust as the address of said property?

@SwampDL Жыл бұрын

This guy is amazing.....

@avth4255 4 жыл бұрын

This was so informative I had to the Like, Subscribe & notification buttons lol thank you sir 🙏🏾

@jesham7627 2 жыл бұрын

13:20 pertinent information. Toby, you're my new entity tax attorney!

@ThallonRose 2 жыл бұрын

This video was very well done. Clear, concise and zero fluff. Thank you

@TobyMathis 2 жыл бұрын

Thank you! We are glad that you found it helpful!

@Insight-.- 2 жыл бұрын

Thank you Toby, very informative video, well done. I wish I could find similar information for Australia, back to the search.

@TobyMathis 2 жыл бұрын

Thank you! We hope your search goes well!

@TheMontaseri 3 жыл бұрын

Awesome presentation. A couple of questions: 1- Is LLC still the best entity if property is all paid off ? 2- LLC seems to help with a) Liability Protection and b) Avoids double taxation. But is it also helpful for estate planning for parents wishing to pass ownership of their property to their child(ren) ? I read something about "member's shares" in this regard. Thanks in advance. (from California with love :-) ).

@brodyllc Жыл бұрын

toby you have the best way of explaining things to us lay people

@justrandomthought 2 жыл бұрын

I love this! I wish there was someone here who knows this in Wisconsin!

@TobyMathis 2 жыл бұрын

We do operate virtually in Wisconsin.

@christine8267 2 жыл бұрын

Wow I learned so much from your video , thank you Mr Toby

@veritasimmigration 2 жыл бұрын

Thanks, you're GREAT at this!

@rcruz401 4 жыл бұрын

Dude, You are AWESOME!! Just One Question.. So, If I have debt on my property I start with the Landtrust...GOT-IT.. then I marry it with the LLC which I would Start in the state where my property is held and the Landtrust would be a member to that LLC.. GOT-IT.. So where does the Wyoming LLC come in which I would own? Or would the Landtrust Own the Wyoming LLC and Wyoming own LLC with Property inside?🤔🤔

@TobyMathis 4 жыл бұрын

Good question and you are close. Title held in the name of the Land Trust, then beneficial interest of the Land Trust is held by a state specific LLC (normally), then that state-specific LLC would be owned by a Wyoming LLC.

@howleyrealestate7279 4 жыл бұрын

Absolutely fantastic content. I have heard bits and pieces of this from professionals but never layed out like this. It is a little bit overwhelming though, what would the next step be, seeking out a lawyer locally?

@alliesteamc3546 2 жыл бұрын

Can land trust be used for interest in commercial real estate property LLC or limited partnership?

@TobyMathis 2 жыл бұрын

A land trust can generally be used to own an interest in any kind of real estate. However, they cannot be used to own an interest in business entities.

@jennrossotti8920 3 жыл бұрын

Great video. I’m going to have to watch it multiple times to remember it all but very helpful. 😆

@06Joybells 3 жыл бұрын

Great explanations. Very helpful. Thank you.

@Zmap6191 4 жыл бұрын

Thank you for the great content. Still a bit confused though. How does the land trust get to hold the title without the mortage company knowing that the Rental is now in an LLC. What are the steps we need to follow?

@paularaiza1017 Жыл бұрын

Great content!

@favdup2134 3 жыл бұрын

Nice!!! 👍 Well done, ⭐🥇Toby. Even a child can understand it, we Loooove!!! The way you explain stuff's.👍👏

@TheRochoa21 3 жыл бұрын

This is great I’m in Henderson thank you for this information!!

@andrewbaker2799 3 жыл бұрын

0 dislikes, I love it

@shad0wTM 4 жыл бұрын

Can you refer me to a attorney in California who knows all of this information and who also knows how to do whole sale closings, wraps and subject to?

@mansourarbani5354 2 жыл бұрын

Hello Toby I enjoy lessons you have to give and like to speak with you organizing my real estate business entities if you are available.

@TobyMathis 2 жыл бұрын

How can we help you? We do offer free strategy sessions if you are interested in speaking with someone form our organization.

@johndeneen980 3 жыл бұрын

Always excellent job!

@market-climbing-stockchart3279 3 жыл бұрын

Best explanation I've heard thanks

@alliesteamc3546 2 жыл бұрын

Is “Land trust” same as revocable trust?

@TobyMathis 2 жыл бұрын

A land trust is a revocable trust - but there are many different types of revisable trusts.

@CreativeSoul333 3 жыл бұрын

I have a few questions for you: Does there have to be a physical person as the trustee listed on the land trust if you name it "Main St Trust"? Does having a land trust remove the complication of the lender's concern regarding the 'residental' loan (conventional loan) for the LLC? NOTE: My lender is stating that I cannot have an LLC on the property Do you have to inform the insurance company of the LLC and/or Land Trust in order for them to protect the property sufficiently? Does New Mexico acknowledge land trusts? I heard that California does not....

@coingalaxy8249 3 жыл бұрын

Awesome information! Thank you for sharing it with all of us... you got my like and subscribe as well...

@TobyMathis 3 жыл бұрын

Thanks for the sub!

@codelucky Жыл бұрын

Let's say an LLC registered in Wyoming entitled Xaax LLC has three SaaS products (Saas A, B, and C), and an investor wants to invest in SaaS A, so the founder has decided to pull SaaS A out of XaaX LLC and form SaaS A, Inc as a C-corp in Delaware. What is the feasible method? And how to run multiple products company?

@uhohotdog3483 2 жыл бұрын

Very Informative THANKS 😀

@TobyMathis 2 жыл бұрын

Thank you for watching!

@MegaAli213 4 жыл бұрын

You are incredible, God bless you.

@CraigCastanet Жыл бұрын

I wonder, if you already have a rental home in your name, and then put the home in a land trust, does that give you anonymity, or would a search still show you as the previous owner, and an attorney would still infer that you remain the current owner?

@elnene174 3 жыл бұрын

Thank you Sir. God bless you!

@MetalBum 4 жыл бұрын

Separate LLC for holds and S Corp to flip. Thanks man

@PatrickYepez 5 жыл бұрын

Excellent!!! Thank you

@lloydfreeman1203 3 жыл бұрын

What about renting farmland how would I protect myself with other people's land that I have leased?

@alfonsoparralenis5357 3 жыл бұрын

Amazing. Learned a lot

@sircarpediem4175 4 жыл бұрын

HR2513, now what Toby?

@alliesteamc3546 2 жыл бұрын

How to fill out.Bank’s financial statements required for financing or home equity?

@ludgenspierre2307 4 жыл бұрын

Great content ... Thank you..

@zarni000 7 ай бұрын

What if you want to keep your realestate off your personal taxes? Would c Corp do that?

@ledisalbert3426 3 жыл бұрын

Thank you for a such information class. In which older should I married the land trust to the LLC? Is there a particular order that they need to be established under?

@callofdutymobile1074 4 жыл бұрын

What about avoiding probate after death by using a living trust. How would that be connected or used. Can be revocable or irrevocable tust right?

@Frankiep72 4 жыл бұрын

Great content! on a land trust, can the grantor assign his beneficial interest to an LLC, even if the manager and/or member of such LLC is not the grantor himself? Also, would the property's insurance company have any issues with this type of transfer, since the the grantor does not have a beneficial interest and is not part of the LLC? Thank you!

@patrickbowen6876 4 жыл бұрын

Thanks for the great video, I am wondering if a property used for an air bnb, generating income would be considered “active” according to the examples in your video even though I am holding it and therefore best in an S-Corp?

@raakgu 2 жыл бұрын

I think that would still be a buy and hold rental property. Active is more pertaining to the amount of time you plan to keep the property.

@nataliavgarcia8108 4 жыл бұрын

Thank you

@pz8265 Жыл бұрын

If Wyoming has these protections, then why not make all the LLCs as Wyoming LLCs? (Instead of a Wyoming LLC owning LLCs from a different state)?

@Ktube3210 3 ай бұрын

Doesn’t setting up multiple LLC s become pricey? Because you have to pay for each one? And does the Wyoming llc attached to each individual LLC? Or you put all of your llcs under 1 Wyoming LLC?

@TobyMathis 3 ай бұрын

While it does cost money every time you create a new LLC, the protections you get in exchange are well worth the cost. Our service offerings go beyond just creating an LLC, we assist with drafting all the neccesary documents to ensure you maximize your protection while also minimiziing your tax burden. We offer various packages that can assist with reducing the cost of creating a large number of LLCs. Generally, each LLC you create for passive investments will be owned by a single WY LLC. Set up a free consultation with my team here: aba.link/d5db27

@lashun1st Жыл бұрын

What if I bought property in name, should I transfer to LLC and pay transfer cost

@thebeasyband9425 9 ай бұрын

Why did you say you can bypass trust and go straight to llc when buying cash? Can you elaborate?

@TobyMathis 8 ай бұрын

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

@nataliavgarcia8108 4 жыл бұрын

Great info

@dirgesinthedark5637 5 жыл бұрын

What about holding title in a fictitious name that is a persons name?

@justrandomthought 2 жыл бұрын

If I have 20 properties, do I THEN put them all into a Land Trust? Do I need a Land Trust for each LLC?

@radhamesventura7441 3 жыл бұрын

Good information, now does each LLC (property) should have an independent WY LLC ? Please advise. Thanks, Rad

@alliesteamc3546 2 жыл бұрын

Banks want financial statements, how to fill out their financial statements? Ok to say investor has xx trust interest in y property?

@sappir26 2 жыл бұрын

Should a Private Operating Organization invest in land in this way?

@donireland6218 4 жыл бұрын

If I create an LLC TO use as trustee (let's call it XYZ, LLC). Let's say I have 20 properties in separate Land Trusts. So house one is titled to Smith Family Trust, ABC, LLC Trustee. Another is titled to Johnson Family Trust. If a lawyer sees a bunch of deeds titled to Land Trusts with the SAME trustee, won't he operate under the asumpion that these are all for the person (assuming he's a decent attorney)?

@emanik2 3 жыл бұрын

Great Content!

@miltonfisher9122 Жыл бұрын

So if I am financing multiple investment properties I should have multiple land trust + LLC which are all owned or held by the Wyoming LLC ?

@myronww 2 жыл бұрын

Why does the buyer of a property need to see your taxes? The title company handles ensuring that the property has a clean title and that the taxes are up-to-date. I have provided tax information to lenders but I don't ever remember needing to provide it to a buyer.

@TobyMathis 2 жыл бұрын

A few reasons, but most importantly to ensure that all taxes have been paid properly and no back taxes are owed. A buyer will also want to know what type of tax bill awaits them after purchasing the property.

@andresvasquez929 3 жыл бұрын

If you have an C Corp and have a lot of cash in it, because you are trying to avoid the double taxation, how do you overcome the extra taxes that may have to pay for holding too much cash in the c-corp? On top of the flat 21%