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Protect the Title of Your Rental Real Estate (Asset Protection Strategies) - YouTube
Channel: Clint Coons Esq. | Real Estate Asset Protection
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- Hey guys, in this
video we're gonna discuss
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how to protect title to your real estate.
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Okay, let's get started.
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(upbeat music)
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Hey, now this actually came about
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because a viewer sent me a question,
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wondering how they can protect
title to their property.
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Now this is a concern for everyone
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because there's a lot
of information out there
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or news reports about people having
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their titles stolen from them,
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and if you're investing in real estate
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the more property you buy,
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well possibly those chances go up.
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So what are some things that you can do
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as a real estate investor to
minimize that overall risk?
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Well first off you should
check with your county.
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Now many counties now have
adopted something called
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property fraud alert,
that all you have to do
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is go to your county recorder's website,
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look for that term, and if it's there,
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you can then put in your
information about your property,
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the property itself and
in your information.
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And what the county will
do is they will alert you
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if anything strange is
happening with your property
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outside the normal, you know,
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paying the taxes and typical transfers.
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So this is a good first step.
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Unfortunately not all
counties offer this okay,
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more and more are starting to
do it, but not all of them do.
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So then you could possibly
look at one of those services
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such as home title lock, to
see what they could provide you
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as far as protecting title.
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And again it's all done
with this in mind that
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I'm going to ensure that if
anything happens on that title,
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I'm gonna get notified immediately
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or it's gonna be prevented from occurring,
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so we don't get too far down the road
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and then it becomes a huge
financial mess for us.
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Now the other thing you
should be doing of course,
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is monitoring your utility
bills and statements.
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So one of the things that
happens a lot of times
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is that people that own real estate
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they find they'll set
things up on Auto Pay.
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And they're paying
attention to what's owed,
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but they're not paying attention
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to the actual billing itself.
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And what can happen in
those situations is that
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if it's coming in say an
e-bill and you're paying it,
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maybe the property address has changed,
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that is where those bills should be sent
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the physical copies.
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And so by paying attention to that,
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making sure you're receiving
those bills on a monthly basis
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is one way to catch this as well.
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Because when people steal
title to your real estate,
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what they're going to do of course
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is transfer over the utilities.
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If they were to sell that
property to someone else,
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that individual is gonna get in there
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and transfer everything
over into their name,
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and then that's gonna notify you of course
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that something is a miss.
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If you're no longer getting the bills
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or the address on the bills,
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had the statements have changed.
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So monitoring that is important
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and that's where a good
bookkeeper can come in.
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If you have somebody that does your books
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for your limited liability companies,
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they should be checking on that.
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The other thing I would focus on too,
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is that when you transfer title
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to your limited liability company,
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you know I've got videos
on how to deed it in
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using the proper form of deed,
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but taking title I think
is important as well.
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So let's assume that I set up
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Red Rabbit LLC,
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and I set up Red Rabbit LLC in Delaware.
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So it's a Delaware
Limited Liability Company
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because that's where I
own my rental real estate
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this property is in Delaware.
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So I have this entity set up.
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Well when I transfer title
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into that limited liability company here,
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the grantor is going to be Clint.
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So here is Clint down here
on a deed I'm the grantor
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that is the person who
is transferring title.
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And then you have the
grantee that is the person
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who is receiving title to the real estate.
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Now the grantee is gonna
be this Red Rabbit LLC.
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And so you may be inclined to put down
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Red Rabbit Limited Liability Company,
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because that is the entity
that is taking title.
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Well here's an issue that
could come up for you.
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If you were just to put in Red Rabbit LLC,
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it might make it easy
for someone to step in
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and fraudulently obtain your title.
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How could they do that?
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Well, this Red Rabbit LLC
is set up in Delaware right.
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Now, does that stop someone for setting up
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a Red Rabbit LLC in Florida for instance?
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So someone goes in, they set
up Red Rabbit LLC in Florida,
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they then approach a buyer with their LLC,
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and say, hey do you
wanna buy this property,
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own it in Delaware, Red Rabbit
Limited Liability Company.
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They pull up the deed online title says
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that Red Rabbit LLC, they trace it back
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to this Florida entity that
has red Rabbit LLC there.
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And fraudster here is the one that says,
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yup, I can sell it, and so they sell it.
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And so for the appearance
purposes, Red Rabbit LLC,
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it happens to be the
Florida LLC Red Rabbit
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that's selling the property.
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So the way you prevent this,
don't make it easy for people
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to commit fraud, is when
you're deeding the property
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into the grantee, put Red Rabbit LLC
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a Delaware Limited Liability Company,
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put that down.
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All right, so if you put
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a Delaware Limited Liability Company,
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there's only one Red Rabbit
that can exist in Delaware.
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And that is your Red Rabbit,
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and fraudster isn't
gonna be able to sell it
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out of a Florida Red Rabbit,
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because title whoever
looks at it would see
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that is supposed to be a Delaware
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and not a Florida Red Rabbit
Limited Liability Company.
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So those are some of the
things that you can use
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to protect your title.
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Generally speaking I tell people,
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hey when it comes to protecting title,
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if there's an aggressive
criminal out there
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that just wants to commit fraud,
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it's gonna be really hard
to stop them from doing it.
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You may wanna lien up
your properties as well,
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you can file liens against them.
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You've seen some of the strategy
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we'll talk about using a friendly lien.
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If you wanted to go this far
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so you have an LLC set
up over here in Wyoming,
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and what you're going to do,
here's your property down here,
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right here it's in your LLC over here.
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You can file a friendly lien
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against your property and encumbrance.
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And so by having those
encumbrances on there,
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typically the people who hold
a lien against a property
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gonna get notified,
because if a buyer comes in
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and they see all these liens
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they may not be willing to buy it.
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And so cause you've already
sucked up all the equity
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and they don't see any benefit there.
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So there's things like
that you could do as well
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to try to protect title,
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but those first few go check your county
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that is the best thing you
can do to ensure that if
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there are any changes
that property fraud alert
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will alert you, and make sure
you deed it the right way.
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All right guys, hope you liked this video
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on how to protect your title,
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if you got any other ideas like that
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and you want to send and we hear
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or email me or put them in the comments,
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I would love to hear it
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cause I'm always looking for things
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that you're interested in
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so I can produce more
content for you, take care.
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(upbeat music)
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