The Ugly Truth About Investing in Real Estate (And How Not to Get Screwed)
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(I couldn’t believe it when I found this out.)
Just a while back, I was having dinner with my favorite aunt and uncle, we were discussing the new investment property that the two of them had just purchased.
(Second one within the last couple of months - complete novices too.)
By all accounts, it sounded like a really, really sweet deal.
Trouble is though, they have made themselves prime targets for every sue-happy Tom, Dick, Jane and Harry.
Why, you might ask?
Because NONE of their properties are protected by a Land Trust.
Essentially they are walking around with their financial statements taped to their foreheads, and just ASKING to be taken to the cleaners.
Truth is, if you haven’t shielded yourself, your business AND your properties, you are giving folks a free reign to strip you of everything that you have.
The ugly reality is that lawsuits can bankrupt you, even if you WIN. At best, they steal valuable time from your business. At worst, they’ll leave you deeply in debt.
This is the unfortunate DARKSIDE of investing in real estate.
Listen, I’m not saying it’ll happen to you tomorrow, or even a few years from now - and I hate to say this…
It WILL happen if you don’t take the necessary precautions NOW to insulate yourself from these potential predators.
Heck, it’ll even happen WITH a land trust in place. When folks know that you own property, it seems to bring out the beast in people. In their minds, owning property equals being rich.
So What Steps Do I Take?
It’s a fairly simple process to place your properties into a land trust. Your attorney can do it for you. Just make sure that he or she is knowledgeable and experienced with doing so.
Action plan:
1. Stop walking on the wild side and explore placing your properties into land trusts.
Posted: September 24th, 2009 under Real Estate Investing Tips.
Tags: investment property, land trusts, real estate


