What Can We Learn From Sandra Bullock’s Real Estate Investments?

What Can We Learn From Sandra Bullock?

It’s no secret that she’s not my favorite (you can’t love them all), but the thespian, Sandra Bullock, is apparently an excellent real estate investor.

The movie star owns at least 17 properties located all over the US, a mix of residential and commercial investments that include a Gothic Victorian property in New Orleans, a soho townhouse, and a sprawling hilltop compound in Jackson Hole, Wyoming. Bullock, famously private about her personal life, is said to hold these properties in the name of LLC and trusts.

Insights on Real Estate Investment

• Sandra Bullock owns 17 properties across the US.
• Her investments include residential and commercial properties.
• Bullock maintains privacy by holding properties in the name of LLCs and trusts.

So, what can we learn from America’s sweetheart – turned- real estate mogul?

Implications of the 2021 Corporate Transparency Act (CTA)

We can talk all about the 2021 Corporate Transparency Act (CTA), set to take effect on January 1, 2024. In short, the US ranks as one of the worst countries when it comes to secrecy of who owns companies and LLCs. CTA is an initiative to limit money laundering that will require most companies (LLC, limited partnerships and trusts) and their beneficial owners to register with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). A beneficial owner of an entity is an individual who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise (i) exercises substantial control over the entity; or (ii) owns or controls not less than 25% of the ownership interests of the entity (People! This is broad and going to be very annoying for us all!)

Understanding the CTA

So, in layman’s terms, very, very soon, we will all need to go on some government website and register our entities so that we can show/prove that we’re not the bad guys. Gotcha.

But what about if my LLC or Trust only owns my homestead, you may ask? Do I need to do this FinCEN CTA registrations business, you also ask?

Exemptions and Requirements

Great questions. The only exemption for a dormant or inactive entity. A corporation, limited liability company or other similar entity: (1) in existence for over one year as of the enactment of the CTA, January 1, 2020; (2) not be engaged in active business; (3) not have any direct or indirect foreign ownership; (4) not have experienced any changes in ownership in the preceding 12 months; (5) not have sent or received any funds aggregating more than $1,000 in the preceding 12 months; and (6) not hold any kind of tangible or intangible assets. The exception is narrow and really only includes dissolved or dormant entities. Everyone else must file. So, yes, even if the LLC is a holding company or holds just a rental property or your grantor revocable trust holds your homestead, you will need to file per CTA.

So, there you have it, we learn that I’m not a Sandra fan, but just like the rest of us she will need to register her LLCs and trusts per the CTA new rules.