0:23

Hi, everybody.

0:23

This is John Jay Singleton, and I’m going to show you how to put a lien on equity equity.

0:31

I can real estate, and let’s talk about a residential home. Let’s say you have so much equity in your house.

0:39

You have a mortgage or not, it doesn’t matter, but let’s say if you sold your house, you would get, let’s say, $50,000, right?

0:45

And if someone sues you and got a lien to, whatever extent the lien was worth that would encumbered a portion or all of that $50,000 unless you had place to lean before the next person.

1:03

It would prevent it.

1:04

So right now, there’s no one in second lien position, only, or mortgages in Bursley position.

1:09

So what you’d want to do is put Elaine that you control, you can have your company on it. Now, if you’re the title holder, you can’t be the lien holder, I mean, not legitimately.

1:19

You would cloud the title, and it would be easier, challenge, So you need a company.

1:24

I need a trust, or limited liability company, I like the LLC, because then I can parcel out the actual ownership inside the object.

1:31

We can talk about that later, But let me just show you the mechanics of how to do this.

1:34

The first thing you need is a lien instrument and it’s very easy to get one without buying one.

1:41

The government has Lean instruments, you can download and modify, and I’ll show you how to get those.

1:47

So let’s do this for Georgia.

1:50

This picked Georgia, one of the states, and let’s pick Monroe County.

1:56

All right.

1:56

So, we’re gonna pick my, we’re gonna put a lien on some residential property in Monroe County, Georgia.

2:03

First thing you’re going to need, really, when you start this process, before you go to Lean instrument, I’m going to show you how to get this page, By the way.

2:08

I’m not going to just click over the, I’m going to show you how I did that, but what you’re going to need is the legal description of your property. You can get that from your current documents, like your mortgage should have it.

2:17

The mortgage you already have, or your quit claim deed, QU IT, claim deed, OK, the quitclaim be able to describe the property by its mailing address and by the legal description, the metes and bounds, or the lat name, things like that.

2:37

If you don’t have that handy, you can go online, right? Like this. And you can search on, let’s say, rho, county tax, Appraiser, Right. They’re all online.

2:49

You get to the Tax Prejudice website and let’s see, here we go.

2:54

This is Monroe County property portal.

2:58

That’s what they call it.

2:59

Usually if you search on a street and a house number or street, you can actually are searched by the partial ID. If you happen to have, like, say, for example, the receipt from their last tax bill, property tax bill.

3:11

If you key in the parcel ID here, you can search on it and you’ll get a receipt or a bill for the previous, or the next property tax bill, OK?

3:21

And, usually, on that, will be a legal description of the property, usually.

3:26

So, that’s where you start. You can, you can copy it like this. For example, let us say, this happens to be the legal description, but says, Not. But, we can actually highlight it.

3:34

OK, and right click it.

3:36

And Copy, Or we can do a control C on the keyboard, and copy that text, and put it into a file, and just use it later, OK? That way you have to re type it. Either way you want to do it.

3:46

So now we know how to get the legal description.

3:50

And that’s what we start with.

3:51

Now the lien holder can be your LLC and its address can be the same address of the property, or it can be a PO box or mailbox or someone else someone else’s residential Where you can get? mail?

4:03

In the lean instrument, and let’s see how we do this, so I arrived at this page. I’m gonna tell you how I got here.

4:09

I did this.

4:10

I searched on Moses Freddie Mac you can go like this.

4:13

Fannie Mae.

4:16

Fannie Mae then you could do securities’ instruments The correct terminology.

4:23

Here is that you want a security instrument, and Fannie Mae and Freddie Mac have these available for download for free. I’m going to use that resource, So here we go like it shows you I’ve already been there, right.

4:37

So, Click on that link, and if I scroll down, well, look at that.

4:41

I’ve got lean’s, I even have instructions, don’t need those, but I could pick whatever state it just so happens to be Georgia this time. So we come over here and look the form number that they even have a form number by state.

4:54

Pretty cool.

4:54

We just need a standard mortgage, which is a trustee Can we click on that ad?

5:01

It opens up.

5:08

Hopefully, you can see this.

5:12

Let me do a share again.

5:14

Make sure you share here.

5:19

Share didn’t get the hang of this Hoppe.

5:29

All right, So now our attention is focused on this lead.

5:48

OK, so, as you’ll notice, here’s a spot where you put the name and address of the individual, where you want the recorded version of this, once it’s been recorded, then stamped by the clerk of the court, the original will be sent back to wherever you want.

6:03

So, let’s say, Sam Clemens is the Property owner.

6:06

It can be two people.

6:09

I’m gonna. I’m gonna need to go to one. I’m gonna do a screenshot of one that’s.

6:13

Actually, I’m going to save this.

6:21

OK, so, now that I’ve saved it, now I can edit it, all right. So, let’s say Sam Clemens is the Property owner.

6:32

Now, if you’ll notice right over here, on the far right is where the Clerk is going to put the stamp or seal or whatever, and then record it.

6:41

And there may be like a recording number, identifying locater numbers, and all that stuff at the top right corner.

6:48

So, all the space has to be available.

6:50

But Sam Clemens and let’s say his addresses for a couple hundred Peachtree.

6:59

History.

7:01

It’s going to be, uh.

7:06

I just made all that up OK, by the way, But when we don’t want to close up the space, we want to keep it open, because the clerk wants about two inches or three inches or something over here.

7:15

But, we can do this to make it look kind of nice, Leave that like it is. OK, the clarkes going to use that.

7:23

Then, we come down here, we’re going to complete the Lean instrument.

7:25

We have to give the information, so the Lean instrument is going to be dated for like, that the month after you’re doing it. So, let’s say next month. Like, in my case, next month, next month, it’s gonna be December.

7:35

And it’s going to be that instruments can do data for the first year, first of the month? That’s just the data I pick. The most important date is actually the date It’s going to be recorded. But right here, we’d have to have a reasonable big data for like 722 right.

7:50

Obviously, So, the borrower It’s going to be the current titleholder.

7:57

So, let’s see there, Sam Clemens or Sam and Elisabeth Clemens, right? Whoever currently owns the property, it can be anything. Whatever owns the property, it could be a trust owns the property to do it that way too.

8:08

The borrower is going to be titleholder because the title holder wants to borrow against the property and put a lien on his interests.

8:16

So that’s why we have to name the borrower. So, in this case, it’s Sam Clemens.

8:22

And the lender’s going to be his company.

8:26

Let’s just call it this, right?

8:31

And the lender, what is the lender, or the lender, is actually a limited liability company, OK?

8:40

And, it’s organized, an existing under the laws of just so happens, right?

8:48

State of Georgia.

8:49

Then, you want to get rid of these underscores all so you don’t need to.

8:54

This is just for your guidance. It’s good, and lenders address can be the same address as the title holder.

9:02

So, just for convenience, we’re going to go ahead and do that.

9:11

OK.

9:16

There you go. So the node is going to be dated, though. Let’s give it the same date as the security D here.

9:24

First, right, clumsy because I’m not.

9:30

All right.

9:32

States are the borrowers, the lender, and let’s say you’re protected $50,000 in equity Now. we have to start out, actually, like, we’re writing a check. You don’t do that these days, too much, but this is a good $50,000. And zero on grits notice some spelling it.

9:49

Oops, misspelling it, there’s a D in there, OK, 50,000, zero dollars, that’s the correct way of doing it, and then you want to put in 50,000, right, in numbers. Numerical value.

10:05

All right, plus interest, and we’re also going to get to that shortly here.

10:11

Then borrowers promised to pay this debt regular payments and to pay the debt and for no later than so what you do is you say December first is the date and note the obligation begins.

10:22

But let’s say that you have to pay it at least by January first, and we’re going to add 30 years to 2019. So that’s gonna make it too, though.

10:33

All right, 30 years. The reason why I say 30 years is because I’m going to amortize it for 30 years.

10:40

Even if the node is only going to last for seven years or five years or 10, doesn’t matter, because we can make a balloon payment in here. I like to have this alive.

10:49

Sometimes I’m a little left brained when it comes to that.

10:52

Anyways, you get the idea here.

10:55

That’s what it’s gonna look like.

10:57

Um.

11:00

And we want to make the, payment terms real, because, well, we don’t want people to challenge it, we don’t want it to be easily challenged, and I’ve never seen them challenge, but still. That may be the reason because I make these correctly. I make them in a way that they can be negotiable, you can actually sell them.

11:17

Should be fake numbers here.

11:19

You’ll notice, we kinda skip all this language. We don’t care, OK? This is standard language. You can read it if you want.

11:25

But what we weren’t really want to do is notice how there’s, um the Senate’s here kind of goes to the next page.

11:32

I would leave it like that cares.

11:34

But, what you want to do is describe where the property is located or situated. Is the legal term for this situated?

11:43

It’s located in the, in the county.

11:51

Row data of George.

11:56

See, there’s a colon here, we can get rid of all this stuff.

12:01

Now, all this area, right in here, that’s where you paste in the legal description that you got from the other documents, from your know, your quitclaim deed, or the county appraisers website, wherever the metes and Bounds are the lot number, the light description, then, here are just your Postal Address, right on the regular, like you see.

12:37

Right?

12:39

We don’t need any gobbledygook and here we go.

12:43

More standard stuff.

12:47

Like me Got all the way to the bottom, and notice this is 16 pages All we care about is identifying the property correctly, and a real interest rate real loan amount based on the real reasonable equity of the property that’s available, That we’re putting a lien on.

13:06

Now, remember, once you’ve filed this thing, I mean, you could put a lien for 10% over, that, that your equity that you think you have.

13:16

I wouldn’t put it for too much more.

13:19

Um, and just keep in mind that if the property value goes up beyond the lien value, it’s not protected.

13:26

So or whatever that’s work.

13:28

Just be aware of that.

13:30

I would put it for the most reasonable amount. You can go 10% over. I wouldn’t go too much more than that, because you could open it up to be it being challenged.

13:38

And, by the way, you can do two of these two.

13:39

You can do secondly and I’ll put a third link because if you remove the secondly, the third link becomes the next link.

13:46

So, if you really want to protect your property you can put you can put like, 2 or 3 more liens and who’s going to challenge a third or fourth Lean, that’s not real when it’s not going to help him out.

13:59

Even if he challenged the third or fourth lane that you put on because he’s the fifth Wayne as a judgement creditor, what benefit is it going to be?

14:07

So you may, you might want to consider, you know, Doing this, and then doing another lane, like next month, or something.

14:13

Just two to be enough, and that, and that second one, Which will be the third lien position after the mortgage will be the mortgage yearlings.

14:19

And then the second lien you put on it wouldn’t really be worth anything that day, But maybe it might be in the future.

14:26

So most of the time.

14:28

I don’t do that OK, so here he can have a friend Someone who’s not a party to this title or instrument Be the witness, you can sign it, right, so All right.

14:43

Sam Clemens is the Borrower and, you know, maybe maybe Sam and Elizabeth, right? I would recommend that all titleholders do this.

14:54

you could have one of the titleholders put a lien on the property, I just think it’s better if all the title holders put Elaine and make them all themselves, all the borrower.

15:04

You can always release delaying against anybody if you want to, and then you have a notarized.

15:09

Just a side note, a trivia piece attribute here.

15:12

I’m going to tab over and I’m going to show you might see this sometimes on a this section of the document right down here. Where the notary affixes a seal.

15:21

This notary ESCOs is simply going to witness your signature. He or she is not supposed to read the whole document and interpreted. That person is not legally competent to do that.

15:30

Actually, you are. He’s not.

15:32

So if someone sits there and started reading it, just realize he’s not required.

15:37

It doesn’t, you know, sometimes, I like to think of themselves as being important, and all we really want to do is have someone witness your signature with an official seal of accounting.

15:47

So no Republic, he signs and puts his fixes.

15:50

His seal and seal may be preceded by this notation here, Bracket, L S bracket. Now, L S simply means locus, SIG, Levi.

16:03

The location of a signature, OK?

16:06

Hardly ever see that anymore.

16:08

And by the way, sometimes you’ll see like, oh, you’ll see a giraffe where there’s the county name security here, you’ll see data, something, county of something, right?

16:18

And then you’ll see, let’s get rid of this.

16:22

You don’t need this on the document, but sometimes you’ll see this.

16:28

Um.

16:36

You’ll see parentheses, like this, parentheses, in the parentheses, and then right here, you’ll see why this document, so difficult, right here, you’ll see this.

16:53

OK, I’ll tell you what that means.

16:58

That means subscribe. Subscribe, sworn seal, or subscribe and sworn.

17:08

That’s what that means. To me, I’m just sharing some trivia with you here.

17:13

We don’t need any of that stuff, the mortgage Instrument Security trustee thing you’re looking at right here. That is legally sufficient to encumber the equity.

17:21

You record it in the county and that will uncover the equity.

17:25

Just have this part notarized. You don’t need to change anything. You can put some more spaces here. It doesn’t really matter.

17:32

Now, the next thing is, I’m going to show you a note now, I’ve found this note, and this will be included with the video, I’m just gonna go grab it. It was so much easier just to grab it. All right, Here we go.

17:45

OK, so, let me switch to sharing, Barbara.

18:01

OK, now we’re looking at the note, so we pretty much cover the security instrument, the lien. That’s the thing that’s gonna encumber the equity.

18:09

And here we’re going to put in the similar information, I promised to pay US. Dollars.

18:13

You can put again, the $50,000. Actually, it’s asking you for a number here.

18:19

This is a note. It’s an IOU.

18:22

This is the standard form.

18:23

Notice how it’s got a 3200 name on it. It’s a form number.

18:27

I probably got this from the, uh, from the Fannie Mae website I don’t remember, but it doesn’t matter, it’s only like three pages, and you can find them anywhere on the internet. You don’t need to pay for this stuff, It’s all over the place, Just look around.

18:39

Mean, you can pay $10 for it if you want to at Legal Zoom or something, but you don’t need to.

18:44

Here’s an important thing, obviously, this is stuff you already know. This is the mailing address, not the legal description.

18:50

I don’t think there’s a spot for the legal description on here, and that’s not important, anyways.

18:55

And notice how at the bottom, you just need to sign it, all right, and when you sign it, I would do it with blue ink and, uh, Keep it in a safe place with the recorded original of the trust deed or security deed or mortgage, OK?

19:10

Case anybody ever wants to challenge it, It’s not going to happen, but it’s good to have these records.

19:16

So you just fill this out, same information. The lender is, you already saw that.

19:21

All right, so here, you want to have a real interest rate, that doesn’t have to be 30%, unless that’s the market, which is definitely not now.

19:28

But let’s say 5% is a pretty good rate.

19:30

Even 4%, but it doesn’t matter, because it’s just it’s just a lien that your company owns and you’re not actually going to a bank, you’re just recording a piece of paper and that makes the company, the owner of the equity, not the title.

19:45

That’s all we’re doing is transferring equities but we still want a real interest rate, so how do we get a real interest rate?

19:51

I’m going to switch over here.

19:53

I’m going to show you how to get a real interest rate and amortize it so that we know.

19:58

We’re gonna say we’re gonna make our payments, I’m gonna do this right now on the fifth day of each month. just because I like the fifth day, right?

20:04

And it’s going to begin on january fifth, 2020.

20:12

Yeah.

20:15

And so forth and so on.

20:17

And I should paid off by, I’m going to add 30 years to that.

20:22

She paid off by February, first.

20:27

Whatever, I’m going to add, 30 years to 20 20, so it’s going to be 2050.

20:33

I stylo, OK, whatever, I’ll pay those mountain for 30 years. And I’ll make monthly payments at, and this is going to be the address of the LLC, so it can be your, it could be the address, whatever you’re using for the LLC that’s used on the security instrument you can use right here.

20:51

Doesn’t matter, It just should have an address here, OK?

20:54

It doesn’t even give you a real address, but in your case, I mean, it’s gonna, it’s going to be real address, because assault, that’s all you need, you don’t have to do anything fancy here.

21:01

Monthly payment is going to DM out what I already know empowering $50,000 I haven’t decided on my interest rate yet. So let’s do that now.

21:09

I’m going to do screen share real quick. I’m going to switch over.

21:19

two here, Really?

21:28

Make sure to do that, right.

21:38

Here we are at a browser window, where we found the property appraiser’s websites at this time, We’re going to search on something different, I use quite as a search engine.

21:48

So, we’re going to do this. now. You could do this yourself. You could use a calculator.

21:52

I like to use the internet amortization Calculator, like software to do, or funding.

21:59

Like, you know, you can sit at a computer and do this in 15 minutes and create a link for your property, OK, anytime you need to put a lien to protect the equity. I mean, I don’t care how rich you are. It just makes sense.

22:10

Because here’s why, it’s not out so much just protecting the equity, but preventing the need to defend the claim.

22:17

If someone wants to sue you, and you have an interest, or someone wants to see your company, and it has an interest, it makes sense to put a lien on the property. That way. That doesn’t matter if you defend the interests. You don’t have to pay money to an attorney to defend it because it’s not subject to lead.

22:31

You’ve already leaned up the property, right? It’s not there anymore, basically.

22:34

So, I would do this, go to a website. And this one happens to be called Amortization Desk Desk Help.

22:41

There’s a billion of these things, right? This is what type of loan is this going to be. In our case, is going to be a home equity loan, right, Because it’ll be second lien or third link position.

22:49

And it’s only going to be for $50,000.

22:53

And the loan term make it always 30 years. You can make a balloon payment, you can even record as being satisfied. You know, it doesn’t have to be 30 years.

23:00

What you want is a real payment, doesn’t, you don’t want it to be too high.

23:06

Not that you’re gonna have to make the payments either.

23:08

We can, we can talk about that but when you record this, you can create a paper trail showing payments and all you’re doing is taking money from one account and putting it to let’s say the LLC’s Account or a third party payment processor’s account.

23:24

Just so you have a payment history or you can create a payment history on the fly, that’s pretty easy to do with software.

23:30

It’s almost unnecessary but just so you know, there should be a real payment and if you wanted to have a payment history, OK, and this is a great way to do it.

23:38

You can have a 30 year amortized instrument and only use seven years of that, OK.

23:43

This case, 30 years, OK, I like 5.25%.

23:47

I don’t need to change anything.

23:49

Now, be careful about here because we’re using, we’re using a app, a free service, so, there, they put an ad in here. Check today’s mortgage rates, don’t click on that one. You’ll get an app.

24:01

Come down here and do a calculation on all this data calculate.

24:07

There we go. There’s our payment.

24:11

This is kind of revealing, isn’t it?

24:13

Take some time and check that out.

24:15

That’s why consumer debt is not that great.

24:21

So, let’s go back to the instrument, 276 and 10%, right?

24:26

So, note.

24:36

OK?

24:39

So, I didn’t wanna, I wanna go to that. Not the security, you don’t wanna go back to that node.

24:49

Sure.

24:54

I heard it, OK, so go back to the note.

24:57

Then 276 and 10%, right, so the interest rate was 5.2, 5. So, the computer did an amortization.

25:06

so the 276 dollars and 10% comes right over here.

25:15

There we go.

25:16

So if anybody wants to challenge this and he says, Hey, let’s see if these numbers are real and he runs an amortization on this based on the dates and everything.

25:25

Based on the principle amount and the day, it’s gonna go OK, OK, that makes sense. All right?

25:30

This fits, OK, It’s a it’s real, no fake numbers here.

25:34

If I had a payment of $10, here, that’d be a problem, right?

25:37

Or two or $100, that would be a problem. But this is a real number.

25:43

And on the note, like I said, all you do is sign it, I would sign it and blue ink, Print it out, sign in blue ink.

25:49

Well, you get the original trustee or security instrument or mortgage back from the county recorder’s office, in the mail.

26:00

Put those two documents together and put them in an envelope and label it With the address, and you know put put the name of this is a Lien dated on such and such a second lien, or a second mortgage equity mortgage whatever.

26:13

Right that that’s that. That’s how you know what you’re doing.

26:18

Now, if you ever had to sell it, we could talk about that, but if you had to sell it, you know, somebody may pay you a discounted rate of the face value.

26:25

So let’s say a $50,000 note might be worth $35,000. So depending on what you’re gonna do with that money, Maybe it’s worth 20,000.

26:31

I don’t know, depending on what you’re going to do with that money.

26:35

If you’re ever going to sell them, no.

26:36

Chances are you have already something that’s pretty, a pretty good bet where if you got the discount rate today, you could make your money back quickly and make a lot of money after that.

26:48

That would be.

26:49

that would be the only reason that you’d want to do something like that, OK. So, let’s do the screen share again. Come back to you.

26:58

Stop.

27:01

Ooh.

27:06

To come back here.

27:09

Let’s close this out.

27:11

Sure, we get the right thing going on here actually wouldn’t be bad.

27:15

But that’s, that’s the basic information. So, we have the note, I’m going to close that out.

27:20

We don’t need anything there.

27:22

And then, you’ve got the Lean instrument. So I’m gonna go back to … real quick.

27:29

Oh, yeah.

27:34

So here’s the instrument, so you see.

27:40

Thousand dollars, that’s our day. Those are dates.

27:44

There’s a spot in here to oppose the penalty for being late.

27:50

I don’t like the percent penalty I like just like a flat dollar amount.

27:54

Hum.

27:56

Where do I put that?

28:04

OK, the node has anyways, The node will have like a 35 Percent, I’m sorry, like a some some percentage of a fee if you’re late Like I said, this should be real.

28:14

So I don’t like to do that.

28:16

I like to have a dollar amount like $35, so I would change that whole line Don’t do that right now.

28:25

She’s fine.

28:32

I’m going to grab that note again.

28:34

OK, so I’m going to show you on the note itself.

28:49

I’m done, OK, so.

28:58

Here you go, The amount of the charge for being late, if you’re, let’s say more than five days late, it’s typically five calendar days late, and making the payments, remember, this is, yeah, you should be paying yourself, obviously.

29:13

It’s just paper, it’s a paper record, that’s all, they’re not actually going to need, that nobody’s ever gonna penalize you, but there should be real numbers here, OK.

29:21

If you sold the note, it’d be a different story, but I don’t like to assess a percentage.

29:25

I think it’s unfair, but let’s say the amount of the charge will be $35.

29:32

Say, $35.

29:36

That’s it.

29:41

That’s just my preference, you can do what you want, keep it reasonable.

29:47

The rest of it’s all good, so that makes your note negotiable. It’s something you can actually sell.

29:54

From day one.

29:57

So, that’s the note.

29:59

Basically, the same information is here, the only different information.

30:01

It’s going to be your amount of payments right now, but we put 276 over here, and we calculated that from the website.

30:10

So.

30:13

The monthly payments are gonna be made to the address, the same addresses on the mortgage lane, So let me go back to the mortgage line.

30:26

All right.

30:30

Arrogance.

30:31

And that’s it.

30:32

So, now, you have a document that you can print out.

30:35

Have it notarized and signed by the property owners, Titleholders.

30:41

Then you take it to the County Recorder’s office and record it. It’s just a piece of paper and it will protect that property.

30:46

You can own that Lean or your company will own that Lean, and that’s a conveyance of the properties, equity.

30:53

If you do that before a judgement creditor, well, then, you’re ahead of them.

31:00

You can also do this.

31:01

Some people do this just to strip equity, for all kinds of reasons, but it would avoid the need for litigation costs.

31:10

You know, you can get financing this way.

31:12

It’s not the cheapest way of getting financing, but the only reason to get financing this way is because you have a really great idea, you’re going to make a bunch of money and you get a good bet.

31:20

So, yeah, you’re gonna pay a higher interest rate, but that’s OK.

31:28

And that’s it. That’s the nuts and bolts of how to put a lien on some real estate that you own.

31:35

And that way, you don’t have to transfer the title.

31:37

Sometimes when you transfer the title using a quitclaim deed, you lose homestead exemption if that’s the place where you live.

31:44

If it’s a rental property, it won’t matter that much.

31:46

Just be aware of any taxes that are assessed because you conveyed the title.

31:54

And if you have a mortgage and you can pay the title, be aware that sometimes lenders will invoke a due on sale clause, even though you didn’t really sell it.

32:03

But what you have to do is notify the lender that the conveyance was done for estate planning purposes.

32:11

And I’m going to include a sample letter that I like to send to lenders in a situation, where we’re going to do a quick lengthy. In fact, that’s going to be in the quitclaim deed video. I don’t wanna get too far into too. Many details, I just want to separate those out.

32:25

But when when you put a lien on the property, you don’t have to convey the actual title, right, that involves, sometimes contacting the mortgage lien holder to make sure that there’s not going to be a problem.

32:37

Like, they don’t want to invoke the due on sale clause.

32:41

Um, if you just put a lien on the property, you just do that all over the place.

32:44

You don’t even have to care what the hotel exemptions are, anything like that, because even though you are conveying the equity, and yes, it’s a conveyance, the lenders aren’t going to care, and the tax people aren’t gonna care, you’re still gonna have the same tax situation, as I’m telling you, That’s a pretty good tool to use, but anyways, that’s the sum of it. We’re gonna get into some more detail on different applications of the same idea, OK?

33:07

That’s good for now, hope that helps.

33:35

Hi, everybody, this is John Jay. And I wanted to cover, let’s call this the second part of Equity Stripping.

33:43

Pay no attention to this right now. Let’s go down to a couple of notes I made.

33:48

Previously, I was discussing how to take equity out of your name when it comes to residential real estate.

33:56

We’re talking about a house: Where are you live in? Or?

34:00

It could be owning residential real estate that you’re leasing out to someone.

34:06

You can convey the equity by recording a link.

34:08

We already discussed this and the previous video, but this one, we’re going to talk about how to actually convey the entire ownership interest, which is the title, the recorded title.

34:19

So, there are a couple of considerations here.

34:22

The first one is, before I do this for somebody, I want to make sure that if it, it’s OK that the owner understands that there may be a loss of property tax exemptions. In some states, it’ll be known as homestead property tax exemptions.

34:46

And I know in California, in Florida, this may be the case.

34:50

So if you convey title to real estate out of your name, unless you do other things, you may lose your homestead exemption.

34:59

Now, many states, I believe you can retain your homestead exemption if it’s conveyed into a truck. So there are some limitations on it, but you can, for the most part, retain your exemption.

35:08

Then some states, you just can’t retain your exemption if you convey it.

35:12

If you convey your ownership interest to a trust or a limited liability company or some other person, it can be another human being.

35:22

You may lose your homestead exemption because the new owner is not a resident or doesn’t or isn’t not residing at the property, OK?

35:33

So, there’s some, there are other reasons, but that’s the first consideration. And usually it’s around 25%.

35:38

It’s a 25% property tax break, so it’s something to consider.

35:41

Sometimes, it makes sense to actually pay the additional tax. It depends if you’re gonna sell the property in a in the near future, like within a couple of years, maybe it makes sense to pay the tax because you’re avoiding a bigger liability, you know, it could be an IRS later something. I wouldn’t always convey the property ownership.

36:02

I am only talking about judgement liens from creditors if I, if I have no creditor suing me or private parties suing me or a company suing me and I have a personal interest in my property because I my name is on the title.

36:17

Maybe I’m not going to convey my interest to a company, or because I can, I can easily avoid that liability if I just put a lien on the property.

36:28

And of course, you know I discussed the limitations of putting a lien on the property and stripping the equity, but if I’m going to really want wanting to take the property out of my name, which is really, I’m taking it out of my estate, I think it’s the real objective.

36:43

If you’re going to convey that property or title out of your name, it’s because you want to take it out of your state or you have, yeah.

36:51

A pretty substantial liability to the United States or IRS or state tax issues.

36:58

Then you want to take it out of your name, because the property lien.

37:03

Inequity laine, is not going to protect you against tax claim.

37:07

The, the IRS has a superior lien position to a mortgage, and the state tax collection has a superior lead to the IRS. So it’s kind of in that order.

37:19

Your first lien holder is going to be your state tax. Your second one’s going to be IRS. If there’s going to be the mortgage fourth, is going to be the second lien holder home equity. He rox something like that.

37:28

And if there’s a third lane, maybe it’s your lane, you’re going to use it to uncover your equity.

37:32

And sometimes you can put forth, you know, we discuss this, so just keep that in mind.

37:37

I’m going to show you, OK.

37:39

Here’s a brief glance at the quitclaim deed, OK? It’s a generic quitclaim deed. I did this one from North Carolina some time ago.

37:47

But it’s, you know, I just made up a name here, you can do, this is good for any state.

37:52

Now I’m gonna go over this briefly, but let me switch over. There’s a couple of things I want to show you.

37:59

Along with this lien, I’m sorry, this quitclaim deed.

38:03

if I want exemption from the if I’m going to still have the homestead exemption, I have to usually add an addendum to this. And usually, the state or county has a form you can use. Now. There’s a couple of tax considerations.

38:17

one is the loss of homestead property tax exemption, which is about 25%.

38:23

And then there’s another tax, it’s not always in every state, but in California and Florida, I know there’s something called a document Terry stamp tax.

38:33

And all that means is there’s a single tax on the transaction itself where I’m conveying from one titleholder to a new title holder.

38:40

And there’s a percent tax assessed against the value of the property at the time of conveyance.

38:48

You can get exempted from that if you’re conveying the property for estate planning purposes, just like the homestead exemption.

38:55

You can know you can avoid waiving the homestead exemption, if it’s conveyed for estate planning purposes, and, again, there may be a form that you have to include with your quitclaim deed or gift to your County recorder’s office. And let me go over that real quick.

39:08

I’m just going to switch screens here, just to make sure I can give you some idea what this looks like.

39:19

All right.

39:24

So, here it is. This is the change of ownership statement. This is one that is available for California.

39:29

You can do a Google search on that form name, Change of Ownership.

39:33

Usually, it would be cause something like property, conveyance, property tax, exemption form, or maybe it’s a document terrie, stamp tax exemption form. Look at those phrases on the Internet, and you’ll find it, you can also contact your County recorder’s office, the Property appraisers office.

39:53

I believe every jurisdiction has this ability to retain for you to retain your homestead exemption unless clearly it’s not allowed in the statute, OK.

40:03

So here’s one we did for Marin County, California.

40:07

You can see the assessor, affixes, some information in here. We don’t really care.

40:12

Um, usually this is for the assessor’s office, but, you know, basically you would identify the property.

40:17

And if you’ll you’ll see here, looked at all these checkbox forms, you see, I selected no for everything because all these, OK, I should say none of these apply.

40:26

For this particular type of transaction that I’m describing here, this is, this one I did is identical to what we’re talking about.

40:32

So, none of these conditions apply all the way down to letter M OK, and as you’ll notice, it says here, this transfer between parties is proportional and between the transfer and transfer rate, the exact same interests are that are remaining. OK.

40:48

So the interests of the property are identical before and after the conveyance so that I can select this option here and that will exempt me from the documentary stamp tax.

41:00

This is for California. So I like California, because you know, it’s pretty clearly, I like it in terms of using this to demonstrate it, so you’ll have to find out what it is for your state. I don’t have one handy for Florida, but I’m sure that’s pretty easy. I’ve used a long time ago.

41:12

I don’t know, the details. What basically you’re going to end up with a form like this.

41:16

Now, notice that, um, I give, I’m given a chance here in part two to explain what this is all I’ve done is when I selected this here. I’m just restating it here again in my own language, that conveyances solely for estate planning purposes, and beneficial interests remain the same.

41:36

Then part three, and this applies in this case, because you know, there’s no money changing hands, it’s just for estate planning purposes, and then the property information, and then you do the certification down here.

41:49

We’re syndicated. It’s very simple.

41:51

There’s some instructions if you need help, but basically, this is as simple as it is. Now, there is a form. This, there’s a form.

42:00

I’m sorry, there’s a, an exemption code and I happen to locate this. I’m going to have to switch screens here.

42:05

I’m going to show you what this is here. Let’s see.

42:08

Share, Look at.

42:14

Again, this is for California.

42:17

Let’s see.

42:22

There it is.

42:24

Now, this so happens to be the quitclaim deed for California. You can use the one I’m going to show you. But this is one you can use for California.

42:33

You’ll notice, no, it’s gotta have the same information over here. I’ll go over that in just a minute.

42:39

You’re welcome to use a quick claim deeds that your state commonly uses, but you don’t really have to. I mean, basically, you can use a piece of paper and you can handwrite it, OK?

42:46

It just has to have the certain information like, in this case, The California form has the parcel number here.

42:54

All right.

42:55

Now, what I happened to be able to do in this case is find the exemption code and I had to go to the county the county recorder’s a website. I forget how I found this, but it’s, you’ll find a tax table and exemption codes.

43:11

Now, almost every jurisdiction, it’s very easily located. It’s published, but in this case, that particular exemption I was asking for.

43:20

Was the one for, again, where the same parties, the parties are different. OK, the owner is conveying the property over to a new owner, but he retains the beneficial interest exactly as it as he did when he owned it in his name.

43:35

Now he owns it through a company, but the beneficial interests are the same. So therefore the tax code that applies, the exemption code is this 1125. Alright.

43:46

All right.

43:47

So then we have, you know, the name of the party who’s quitclaim indeed and find the quitclaim deed, right?

43:53

The Disclaiming Party, that’s the current owner, and the new owner is going to be your LLC, sometimes I use the, the address of the property as the name of the LLC, usually, if I’m not using it for any other purpose.

44:06

Like, in this case, it might be 123 M Street LLC. We’ll get to that in just a second, and this are there.

44:11

The address of B here, I mean, you can put any address you want, but the name of the city in the county.

44:16

That’s just how it works, and of course, you sign it, gotta haven’t notarized.

44:21

All right, here’s your acknowledgement form.

44:23

This is called the …, all right.

44:26

Once all this is completed, you’ll be able to file it now. Let’s switch over to my generic quitclaim deed.

44:34

And this is the one I want to use to demonstrate what I’m talking about today. Call this the Quitclaim Deed form. And these, of course, these example letters will be attached to the video. So don’t worry about that.

44:46

All right.

44:47

So, notice how Quitclaim deed form, it’s one page.

44:53

Um, on the address, whoever’s preparing this is the person who wants to get a copy of the original … copy the original.

45:00

But the actual original that has an adhesive label affixed to it or a stamp on embossing Mark on it will be sent back to this address.

45:13

Usually title companies and attorneys use this spot, you can do that yourself.

45:17

And this is where you tell the clerk where to send it.

45:20

Usually these are the same people.

45:23

All right.

45:25

So over here, this area on the top right corner, the clerk is going to affix the stamp or receipt showing the date the fee was paid. Now, there’s a distinction between the fee for recording this which is usually around $10.

45:40

And the tax, if there is going to be one, like the documentary stamp tax and or property tax, those are all three different distinction.

45:47

So what we’re talking about is there’ll be a receipt, a fix to this document right here in the top right corner showing it was recorded at a particular moment.

45:55

And any fees that were included are collected. So down here, you’ll notice it’s pretty self explanatory. You want to put the actual state.

46:04

use all caps here, North Carolina, whatever the state is, and make, make sure this is the same.

46:10

You can do a global search and replace, right. Arkansas. We can, we can do anything they want, right?

46:18

Like that same, I switched it to Georgia.

46:21

Same thing for county. Make sure you remove these brackets. Do not leave these brackets here. See the brackets on the outside?

46:28

When you do it, let’s say if I do a search and replace and I switch that out, I put the actual county name.

46:34

Here we go, Fulton County, It should look like that. Now, notice, it’ll also correct down here.

46:40

So, you fill in the blank.

46:42

Now, notice, you don’t want to have this to be for a specific, a particular amount of money, like in consideration of $10, because some jurisdictions will impose the tax if you have any amount of money here. So sometimes it should be zero dollars. You have to check with your particular forms that you’re using.

46:57

So just to have to amend this a little bit, but basically you want to show that the conveyance is being done by this individual who’s the current property owner. And maybe that’s a woman, maybe that’s a man, maybe it’s a married couple, you just have to describe it here, OK, so change it accordingly.

47:12

Then they reside at particular address. Usually it’s going to be the address where the property is situated. Possibly it’s should be all the same. Doesn’t have to be but a candy.

47:21

Then, it’s what kind of limited liability company you can, like, for example, if I’m doing this in Georgia, it can be a Georgia LLC, but it can be a New Mexico LLC, it can be a California LLC, could be anything, OK?

47:34

By the way, I don’t recommend California LLCs, I just happen mentioned that, but continue on filling this out, right, it’s going to be organized in the state of whatever, let’s say it’s Georgia, New Mexico didn’t matter.

47:45

The grantee is going to be the person, the individual receiving ownership. So, if it’s your LLC, then that becomes the grantee.

47:52

All right, and you’re conveying all rights and title.

47:55

And of course, correct this too.

47:58

You can download this and edit it. This is an open Office I’m, sorry, Lieber Office format.

48:03

It’s an ODT format and it should edit in Microsoft Word or most text editors, or you retain the formatting.

48:11

So it’s pretty easy to edit this And of course the names of the current owners, Mary Smith, John Smith.

48:19

OK, you don’t put Marion John Smith on one line, You get a separate them out.

48:22

They each have to sign their the grand tours if it’s one person, you can just delete this right however you want.

48:28

But the address, again, you don’t have to put the address again. It’s already up here.

48:32

It’s probably here to It’s all probably the same but you can remove it if you want.

48:36

Then this is for the notary, and again, you’re going to identify who’s having his or her signature or their signature witness here. Right?

48:43

So if you’re just one person, just one person, it’s two people, Marin and Jane Smith.

48:50

I’m sorry, I met John and Mary Smith, then, of course it’d be John and Mary Smith or John Smith and Mary Smith over here.

48:58

And then, the Notary, we’ll go ahead and fix this and fix the seal and sign it.

49:04

You can remove the brackets and put the actual year when you’re going to go use this.

49:08

You can edit this form so it’s ready to go when should you, once you’ve edited the form, just print it out and take it to a notary. Have it notarized, which is basically witnessing your signature, and then you can record it, and the moment you record it, you did it over the property. Now, don’t be concerned about existing liens on the property.

49:25

Like if there’s a Judgement Lien, even a notice of federal tax lien, the notice of lien is Natalie, and by the way, it just gives notice that there is a link somewhere, and typically it will be considered an IRS records, which is a different subject. I don’t want to cover that right now. So I know a lot of people like to challenge the notice of lien as not being a leader, you’re correct. It’s just that it doesn’t invalidate the encumbrance on the property. So, what are my point here is what I’m saying is if there’s a lien issue already, like a recorded Lean judgement lien, and you do this quick claim deeds.

49:55

It’s still valid.

49:56

But the previous lienholder that had recorded the lien against your interest in the property, at before you conveyed your interests, that lien will still attached.

50:05

So there’s no issue of a fraudulent conveyance because lean’s continued to attach once the lena’s recorded against the interested party.

50:16

However, many times, he moves it over. I don’t care if he’s cells that are just conveys at first State planning that previously will still attach.

50:22

So be aware of that. So there’s no issue of fraudulent conveyance.

50:26

But really, whoever conveys this first wins if someone else comes along. it puts a link in a week later.

50:33

Too bad. He’s out of luck.

50:36

Mean, he could go to the court and ask for, you know, he can accuse you of fraud at that point but it’s not going to fly. I’ve never seen anybody do that. I’ve never seen anyone succeed. I’ve never even seen anyone try that before.

50:48

My most recent case, someone some attorney try to intimidate my client into paying a creditor to a place to lead a week after she conveyed the title.

50:56

He was a week late And I just said no go back to him and tell him to do his job or you’ll find another title company, which she did, and he did his job and didn’t like it, but he had to do it.

51:06

So it’s very powerful.

51:07

If you do these timelines it works just fine.

51:10

Um, Keep in mind on, um, OK, so there’s, there’s another issue. So we cover the tax issue, I think pretty well.

51:19

So just you may want to listen to this video again, because I know it’s, It’s maybe somewhat confusing if you’ve never heard this before.

51:27

But the central issue is when you convey real estate, where there’s a tax break, because the borrower or the human being is the owner, you still may have a tax break.

51:38

If you can show that the conveyance still has the same beneficial parties, all right, the beneficial interest remained the same.

51:48

Now, there’s the second issue, Which these are the two major issues, retaining your tax benefits, then there’s a due on sale clause now, when you can be property, where there’s a mortgage.

51:59

The mortgage lender may decide that it has to foreclose, or it has the right to foreclose or colon the note as it as they say, because you conveyed the interests and changed the risk in the lean.

52:11

That’s why the lender would call in the note, because you change the interest.

52:15

You change the risk, and there’s usually a provision, in most security agreements, most trust deeds, and mortgages that allow a lender to do that. However, you can prevent that from happening by just getting the lender to acknowledge the fact, that when you convey this property, you’re telling the lender, before you do it, that your interests will remain the same.

52:31

So, while you have ownership interest today, when you convey the title, you will retain beneficial interests in the new owner, and those interests haven’t changed from the ownership interests.

52:43

In that case, the lender cannot invoke the due on sale clause and should not and more than likely will not. So, you just want to open a line of communication.

52:51

Make sure you communicate with the right location for your lender and maybe you have to go to the servicer. Let me go over there real quick.

52:58

I’m going to show you with this, what this letter would look like, OK? So, you definitely want to communicate in writing about this conveyance so that you can avoid that due on sale clause.

53:09

All right.

53:11

So, here’s the letter.

53:13

All right. This is just my example letter. There are many versions of this.

53:17

Basically, you’re going to put your information up here and you can address it to the mortgage company at its address. Maybe it’s going to be the servicer or maybe both.

53:25

So, you have to check and see where you send written communications to your lender to your bank.

53:30

Be very careful about this. So that’s the first part of the project is, make sure you know how to communicate with your bank in writing.

53:36

Because if you send this letter to the wrong place and it never gets a response and you go ahead and convey the property that the bank may just decide, well, it’s too bad, You didn’t send its proper notice, and we’re going to call them the note anyway, So just be careful about that. And a lot of times don’t don’t stress over this, because a lot of times, the bank will say, Well, we’re going to call on the note unless you put the property back in your name, Right?

53:57

So, just, you can recover. This is not the end of the world if you make a mistake, so don’t worry about that.

54:02

Anyways, here’s a sample letter. You want to be sure to identify your mortgage by the account number, explained in the in the regards regarding statement.

54:10

That it’s a conveyance for estate planning purposes, OK, this is a very key phrase, and explain your the mortgage, or for the mortgage data, is the date that appears on the face of your mortgage and the account number. If you don’t have that data, I mean, you should have that date, but you could use the recording date. Either one’s good.

54:27

You can use the account number. I’m sure you have one there. I’m sure you’ll find it.

54:30

Then I would include the first few pages of the mortgage, or the trustee, just for reference.

54:36

Just say, no. No, you didn’t miss anything.

54:39

They know, you know what you’re talking about. We get the, we’re very clear with our communications, OK?

54:43

there’s no mistake, Someone doesn’t miss key a number or something, and tell him what you want to do. I’m just conveying this for state planning purposes.

54:51

Um, tell them, what kind of company is going to be the owner? I’m assuming you’re gonna use an LLC. That’s my recommendation anyways.

54:57

The reason why I like to use LLCs is because no one’s going to challenge the articles because the articles are public record and they’re very standard.

55:04

No one’s gonna pick them apart and say it’s invalid and then say the conveyance is invalid and then therefore I try to catch your liability. Even though you’ve done everything right, if I use a trust, there is a chance that someone can pick it apart.

55:15

So what I’d like to do is, if I’m using a limited liability company, I would prefer using that trust to E, the owner of the LLC, the single member owner, you could do it that way.

55:26

Then the LLC just is out there for the world and has all the recording and all that stuff.

55:30

And LLCs are really solid in that the States will uphold the Charter, even if it’s been revoked, dissolved, or, or, otherwise, you know, revoked by the State. For some reason. Let’s, But maybe you didn’t file your Annual Report or something like that. It’s still valid.

55:49

And this Deed is still valid, and your ownership rights are still valid, even if your Charter for the LLC is revoked or dissolved.

55:56

Just because the courts view the fact that you could just pay the bank fees on the State, filing fees for the LLC, and it’ll be considered as if you were never late.

56:07

So that’s why it’s always viewed as valid.

56:09

Whereas if you’re using a trust, I’ve seen the IRS come in and put a lien on some property that someone conveyed into a trust.

56:17

He did everything correctly.

56:18

It’s just at the IRS.

56:21

Filed a notice of lien with the trust as the alter ego of the taxpayer or the person who previously own the property, just ignoring the trust.

56:30

Disclaiming the trust to be a fictitious name.

56:33

Then that puts the burden of proof proof back on yourself, and that it’s very expensive to get that fixed if you can ever get it fixed.

56:40

I mean, you can’t get it fixed.

56:41

I’ve had to do that sometimes, but I would not recommend being in that situation, So, just keep that in mind. I really think an LLC is your best bet.

56:48

If you really like a trust for some reason, make the trust the single member owner of your LLC.

56:54

Alright. Enough of that.

56:56

Here we go, but it’s telling some the banks and legal terms here. Again, you can just copy this for the most part.

57:02

I know we’re not conveying it to a trust is to an LLC, but the LLC is a trust.

57:08

I know this is a foreign concept for a lot of people, but just, you can check this out, but an LLC can be used as a trust and most of the time, it is used as a trust. Remember, I trust as a relationship. It’s not a structure, even though we talk about it like it is.

57:22

And sometimes, it’s a legal person, but really, a trust is a relationship.

57:25

So, this is a trust relationship you’re creating, and you still have the exemption benefits, and again, I put down here, like I was saying before, there is a legal reference. and you can look this up, this is for the bank.

57:39

If you have an attorney, you know, I’m sure he’ll probably, or she’ll probably have some other memorandum to add in there, but basically this basically says to the bank.

57:48

And there’s no reason why you shouldn’t allow the homeowner to do this.

57:52

He’s protecting his interests, your interests are still protected, and he’s being diligent about notifying you so that should cover any issues.

58:00

So let’s go back here.

58:03

Now look at the very important part of the Steve. Sheetz, probably it makes everything.

58:09

Not everything else is not as important.

58:11

This is the most important part of the deal, OK, so we have all these details here, all right, But look at the very middle here.

58:18

We need that legal description. Of course, we’re going to identify the address of the property, which is what we know as the mailing address, OK? Or, if you’re gonna map it out or drive there. But there is a legal description to the property. So you should know what that legal description is.

58:33

And I know that I’ve asked people over the years, they kinda just freeze. They don’t know what to answer.

58:38

So, I tell them, go back and look at your property tax bill, or go to the website for the county property, appraiser’s office.

58:48

And, you can search on your property by address, name, or partial ID, and usually online, you’ll have, know, all the information about the property tax and evaluation, and all that, But somewhere on that profile is going to be the legal description of the property.

59:05

So, let me give an example, I’m going to switch over here, this other window.

59:13

And I’ll show you how an example when I just pulled off the Internet.

59:21

All right.

59:24

There we go.

59:26

So, here is Cod County, Georgia. I just told that at random.

59:31

And I pulled someone’s address. You see here, somebody’s address, I don’t know this person.

59:36

But notice how the property classes here.

59:39

And the neighborhood is here.

59:41

But that’s not exactly the legal description. I don’t know what the legal description is.

59:45

But, if I come down here, and I pick the assessments from the previous years, and let’s get the most recent ones, it’s always going to be the same. But let’s get the most recent assessment that’s going to open up a PDF file.

59:58

And look here.

1:00:00

This is the bill. You guys have seen this before. You’ve seen a notice of assessment, proposed assessment.

1:00:05

Or sometimes, usually, if you can’t find the legal description in the actual computer profile, you could find it.

1:00:13

Um, in the billing statement, for the previous tax period, like, in this case.

1:00:18

So, here’s the person’s bill, or proposed bill, notice of assessment, and look down here, here’s your property description, That right here, you can copy it.

1:00:33

If it copied everything correctly, it remember this, there’s a distinction between the property, tax ID, the parcel number, and the property description. There is a distinction, they’re not the same thing.

1:00:44

I mean, obviously they’re not the same information, but it’s different.

1:00:48

So, I would come back to the deed, the quitclaim deed. Let’s go back there for a second.

1:00:55

Hopefully, that copied over.

1:01:00

All right, and see where I’ve got this highlighted? and I’m going to say, Edit paste special, right?

1:01:09

And there you go.

1:01:10

That’s the legal description of the property.

1:01:17

It’ll be something like that.

1:01:19

So you want to keep that in mind.

1:01:20

one more thing to keep in mind is sometimes if you want to, if you plan on keeping a property for a long period of time, that the length of time you want to keep the property exceeds the statute of limitations, and there always is for a lien.

1:01:35

If you’re typically a lien is going to be 20 years, from the date it’s recorded, I don’t know, maybe it might be 10 usually it’s about 20, sometimes 30 I don’t know that there’s any liens that are perpetual. I think all things expire. I’ve never heard of one over twenty though.

1:01:48

So, if you’re going to keep the property for longer than 20 years, or 50 years or something, or it’s just, you’re just gonna, let’s say never sell it and rent it out, or something like that, and always retain the title, or you don’t care what happens to the title.

1:01:59

Maybe you’re going to convey the title to a trust, or some other state plan or an LLC, and still you don’t need to sell it to dispose of it and take the money from it. If you’re never going to sell it and get the money from it, you don’t care about the equity.

1:02:13

Are you going to keep it for a long period of time? where any liens against it would have been expired?

1:02:17

Then, there’s really no point in doing any of this. You don’t have to eat over the property if you’re just going to keep it for a long time.

1:02:24

Unless someone’s gonna, you know, there’s really no way. There’s no risk, right?

1:02:29

Unless you’re going to dispose of the property.

1:02:31

If you plan on selling the property in a five years or so, and you think there might be a lien from a creditor on there, well then just did it over.

1:02:38

Right.

1:02:38

And then when you sell it, the new owner gets the cash from the proceeds, and you’re in the clear. But if you’re just not gonna sell it, you’re gonna keep it for longer than the statute would allow a lean to exist.

1:02:48

Well, then you go you don’t really have to do anything, because creditors are not able to foreclose on your property.

1:02:55

You can’t take an unsecured interest where the interest is not expressed, specifically, asked to naming your real estate your parcel of land as collateral for a particular agreement in a lien being recorded. If that doesn’t exist, then your property is not subject to foreclosure. Now, sometimes the IRS could do it. It’s very unusual, though, for the IRS to do that.

1:03:16

So, just keep that in mind.