Warning! Do Not Own Anything in Your Own Name!

When purchasing real estate, you never, never, never want to hold title in any of the following three forms:

  1. Never your Personal Name
  2. Never as Joint Tenants
  3. Never in a General Partnership

Real estate investors, even those who have been around and own multiple properties, started out doing things wrong and never changed.

Homebuyers simply do what everyone else seems to be doing because their realtor, lawyer, or other advisors simple direct them into buying properties in one of these forms.

Businesspeople are busy setting up and running whatever business they are operating and leave the details of property ownership to their advisors. When it comes to holding title to the buildings, vehicles, equipment, and all the assets of the business, they are not aware that their advisors may be wrong in their choices.

Whenever you purchase real estate the real estate agent, escrow officer, mortgage broker, and/or lender will ask; How would you like to take title? Most people have no idea what they are talking about. If you were asked, how would you respond? Probably the same as most, you would ask what they suggest. The response you get is that it’s a legal question that they can’t help you with.

In most cases the deed is prepared with title going to one of the above three forms. These are the type of title that you should NOT take title to your real estate under any circumstances.

You may be purchasing a home, investment real estate, a business that has property, mortgage notes, leases, or any number of other real estate related items. The form in which you hold title is one of the most important legal and investment decisions.

Just to be very clear with full disclosure: I can’t advise you either. I’m not an attorney, not a tax advisor, not licensed in most states as an agent/broker (anymore). I see my job as an author of articles such as this one is to raise questions in your mind and show you what I’ve done, how I’ve done it, so you can talk to your attorney or other professional advisors that know your personal and business situation, and can advise you accordingly.

A few of the reasons why these are bad forms to hold title:

  1. Never your Personal Name
    1. If something happens on or in any property you own, you can be sued and lose everything you currently own or may own in the future.
    1. If you are in an accident or incident having nothing to do with any of your properties, you could lose everything you currently own or may own in the future.
  • Never as Joint Tenants
    • As joint tenants, when one co-owner dies, his or her interest in an asset passes to the surviving co-owner without probate, with nothing going to your heirs.
    • Property held in joint tenancy is immediately subject to claims of each joint tenant’s creditors.
  • Never in a General Partnership
    • A general partnership is a business arrangement by which two or more individuals agree to share in all assets, profits, and financial and legal liabilities of a jointly owned business.
    • In a general partnership, partners agree to unlimited liability, meaning liabilities are not capped and everything you personally own can be seized to pay off debts.
    • Furthermore, any partner may be sued for the business’s debts.

Utilization of any of these forms invade your privacy as everything is available to the prying eyes of the public.

So, with all this said, what are the better ways to hold title?

In ‘The Millionaire Mindset of Asset Protection and Realty Trusts’ Course, how to avoid most all lawsuits and how to hold your real estate investment properties is covered in detail.

For more information go to: https://alko-win.com/catalog/mm/ap/

– With Your Successes, I’ll See You Over the Top,

            – Alan David Kosinski, Real Estate Extraordinaire

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