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Today’s tip – Have your estate avoid probate using trusts.
My suggestion to you is do not hold property in your own name. Hold property in this wonderful, incredible entity that God created called trusts. This came over on the Mayflower. It’s been around a lot longer than LLCs, corporations and limited partnerships and one of the great things is that because you have the trust because the property is already interest, you’ve already determined who the beneficiaries are, then there’s no reason for probate and in fact trust is the only thing that avoids probate.
Trust is something that most people don’t know anything about it. It’s the most powerful entity I’ve ever discovered on the planet. And it’s something that you need to learn and you need to master. I love being able to pass this on to other folks because of the changes and the benefits that I’ve gotten from it had been totally amazing. I can’t tell you how many testimonials from others that have used my system over the years, been doing this since 1984 so there’s an awful lot of experience that’s gone with that and teaching others as well over the last 30 years has been very powerful as well.
Hold your personal property such as autos in a personal property trust. In the last tip I was sharing with you about a thing called land trusts, there’s another kind of trust that I dearly love called a personal property trust. Personal property trust is a different kind of trust than a land trust. Personal property trust holds. Guess what? Personal property. So in other words, a land trust holds land. If it has a legal description attached to it, then that goes into a land trust.
This little series is going to revolve around what I believe to be the very best way that you can set yourself up for success. And that’s the whole title to your real estate in trust. An amazing kind of trust called a land trust. Now a land trust is different from other types of trusts. It’s about 30 different kinds of trusts out there. This very unique and special trust actually allows us to do things that other trusts don’t let us do. Certainly LLCs, corporations, limited partnerships, can’t do many of the things that a land trust can do. It’s one of the reasons that I love land. Trust dearly. Love them.
This chapter is about when single-family and multifamily properties with tenants in them close. I say, on the fifth day of the month. Why is that powerful? Because what happens is typically now the management company or the owner has already collected the rent from the tenant. So at the closing, because you used my contract, you’re actually going to get credit for what’s called a proration of the rent. Rents are paid in advance; so on the fifth of the month, only five days had been used up the rest of the month. If it’s a 30 day starting on the first rental, then the rest of the month is a credit to you. Well, if it’s a thousand-dollar rental, look at that.
Do all paperwork for closing and advance. Do not attend the closing where the seller will sign. You’ve already signed, saves time and renegotiation well. This is one of the most powerful and valuable tips I could give you. It used to be that you’d be actually be excited to go to a closing and you’d wait and you’d do the paperwork and everybody’s sitting around the table and it’s a big day in your life and you’re purchasing an asset and it’s going to set you up for a better life than the one you’ve got. And how good is that? It’s fantastic.
I’ve been talking about closing your transaction and how you can make some additional profits when you’re closing the transaction. Insist that the closing company, closing attorney or title company, provide the closing statement to you at least 24 hours before the closing. This allows you to look for mistakes and negotiate fees. All right, so here’s what typically happens at a closing. You get to the closing, they kind of look out the door and they see that the sellers have arrived and the buyers have arrived and then they go back in there and they actually do the paperwork.
This is going to be focused on areas that affect your bottom line with a thing called a closing statement. Sometimes you go to a closing and all of a sudden you’re surprised by some of the costs that are on there. Well, it’s because you didn’t manage those costs. My suggestion for you on this tip is to ask if you can get a reissue fee on the title insurance. This is when your closing agent writes for the same firm that issued the prior title insurance. In other words, that seller, when they purchased the property, likely also purchased a what’s called an owner’s title policy.
Only offer collateral if the lender insists. Slow that car down and don’t get too excited. In this series I’ve been sharing with you about borrowing money, borrowing money without going to banks and without qualifying for loans. That’s my favorite way to borrow money. I’ve got a whole system on this called Borrowing Volume Six. It’s in my system of training you how to become an amazing real estate investor and build a terrific real estate business. You can find that by going to streetsmartinvestor.com click on tools and click on Volume Six Borrowing.
Make no payments. Wow. How good is that? Well, why would that be good for the lender? Let’s say they have a retirement account and they’ve loaned to you at say 6% interest and imagined that that interest is accruing. That means that every month that you don’t make a payment that you owe interest on the original amount borrowed, plus you own an interest on the payment that wasn’t paid so they can earn interest accruing. Well, what does that mean by the end of the year?
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