Lease Option Pitfall Number 3
Protecting the seller from getting sued personally and getting a lien or a judgment with this particular property is it important part of dealing with least options.
We’re going to talk about Land Trust now, and if you search this site on “Land Trust” you will learn a lot about the basics of Land Trust.
Here are the very basics:
- We use land trust for privacy, and making it difficult to get sued. Notice I said difficult”.
When we place a property into a Land Trust, it turns a public real estate investment into a private real estate investment. If somebody is getting sued they need to do an asset search in order to be able to find out what they own. If they lose in court and get a judgment against them then they need to attach a lean against whatever they own
So when we do lease options, we place the property into a land trust which makes it very difficult for anyone doing an asset search on that seller to know that that particular property who the ownership is.
This prevents future problems down the road from the seller getting a lien or judgment against that particular property.
