May 1st, 2008: Recent announcements by Freddie Mac are causing real estate investors to question their ability to protect themselves. This article by David E. Adkins, Esq. shows how a combination of specific trusts (Land Trusts in some states) and LLCs provide liability protection and asset protection while also allowing financing through residential lenders.
Although the lending landscape continues to change - it seems every day brings some new announcement - and we don't really know what impact government oversight will have, the trust / LLC strategy has benefits beyond the current financial environment.
Don't forget, commercial loans and lenders are not affected by the actions of Freddie Mac and Fannie Mae.
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