Maybe you would like to remain anonymous to any tenants who rent from you. Perhaps you are buying the building from your competitor. Possibly, you don’t want any future creditors to know about the properties you own. Regardless of the reason, there are two ways in Indiana that you can purchase your commercial real estate anonymously: Land Trust and Attorney-in-Fact.
Indiana Code (specifically, IC 30-4-2-13) recognizes the land trusts as a valid means of purchasing and holding real estate. The land trust is one of the only trusts that is considered a “beneficiary-managed” trusts. Most trusts are managed by the trustee and the beneficiaries have to follow. But in a land trust, the beneficiary is able to control the actions of the trustee. The beneficiary can tell the trustee to purchase, finance, hold, and sell real estate.
In a land trust, the trust holds the land, and you can make the beneficiary an LLC to provide limited liability. The trust only allows you as the beneficiary to be anonymous, but does not provide any liability protection. The anonymity is possible because the only information of public record is the name of the trust and the trustee. The trustee could be anyone, including your attorney (Isaac Carr: 219-230-3600). The beneficiary may be an LLC, but you can change LLCs as beneficiaries without any recording in public record.
An Attorney-in-fact is a person who stands in your place to purchase the real estate. This person, who may be your attorney (Isaac Carr: 219-230-3600), is able to have such power if you issue a Power of Attorney. A limited Power of Attorney can provide for this person (called an attorney-in-fact) to have limited power over your company for a single or multiple transactions. This limited power should include the power to endorse checks, as well as execute purchase agreements and closing statements. The anonymity becomes more difficult to retain in the event of financing. While the Attorney-in-fact method allows you to purchase the Real Estate anonymously, it does not provide as much long-term anonymity as a land trust.
If you are interested in learning more about how you can purchase commercial real estate anonymously, reach out to Isaac Carr at 219-230-3600 or [email protected]