What do I see missing the most in a real estate transaction?
In this video Keith shares about one of the biggest things missed in most real estate transactions. That protecting your property with a Trust or LLC. Learn more here.
Hello, Keith Renno here. Welcome back to the channel or back to my website, wherever you’re
viewing this. I want to touch on one of the biggest things I see missed in the real estate
transaction, and that is having the home in a trust or perhaps in an LLC, having that asset
protected. For most of us, it’s going to be one of the largest assets that we own here, especially
in the U.S., so having it protected, I feel is very important. And there’s a lot of other things that
can go into a trust, a lot of other things that can go into an LLC like healthcare derivatives and
how a asset’s going to be passed along and to who and in what fashion and the timing and
things of that nature.
But overall it can save a lot of time, money, energy, headache, heartache when assets are
protected in a trust or in an LLC. LLC’s really for investment properties, or maybe if you’re
renting the home. A limited liability company might have some additional liability coverage for,
say, yourself personally as the owner, and a trust moreso for a personal asset, maybe a
personal residence. So when you are, God forbid that time comes, and you’re passing your
assets, it’s time for you to pass your assets to your heirs or to whoever you choose to have
designated within that trust, it’s much easier for those individuals to be in control and to save a
whole heck of a lot of money in probate.
Probate can be quite expensive, from what I understand, speaking to some probate attorneys,
at least 5 percent, and they go off of the gross amount, not, say, the net. So if there’s a
$500,000 home, there’s $400,000 owed on it. If you have a 5 percent probate cost, then you’re
going to sell that asset, oh, well there’s another 5 percent in, say, real estate costs. Well, now
that’s 10 percent off the gross. So on a $500,000 home, $500,000 asset, that’s $50,000. So if
there’s $400,000 owed, well, now there’s not a $100,000 of equity there if there’s $50,000 of
equity that, say, you would be walking away with if you were inheriting that type of situation,
verse if that property was in a trust, you were designated to be the trustee, now you have the
opportunity to perhaps refinance much easier.
You’re in control. If you’re, say, selling the home, you’re just paying the real estate cost, you’re
not paying the probate cost, you’re saving in itself $25,000 there. Just one example. And if your
home is not yet in a trust, or if you’re looking to purchase a home, you have other assets outside
of real estate, I really recommend talking to a trust attorney or finding out some more
information on this. Again, I am not one just want to share some information and say, hey, if it’s
not something you know about, you’ve yet looked into and determined if it’s right for you or not, I
would say check it out. If you have any questions, comments, let me know what you find out.
Please let me know or reach out any time. Take care.
I hope you found this post helpful and if you are currently looking for real estate, I wish you the best of luck with your search. Please feel free to scroll down and leave a comment.
Senior Loan Originator
Over the past 15 years as a mortgage professional, closing on average 150 loans per year, I have gained a wealth of knowledge and experience about the mortgage industry. My goal with this website is to give you just the INFORMATION you need about mortgages with ZERO sales pitch. I hope you find my posts of value and share it with 1 other person who might find value in it as well.