What kind of trust?

I think I know someone else who went to that seminar.  "Put each rental in a separate LLC."  Seminars are the best way to make money in real estate, but don't try selling that one in California

@Just-Lisa-Now-  has the right question.  Probably a grantor trust.  They went to that seminar, too.  

The lawyers in this fiasco made all the money. 

If each LLC has only one member, the trust, then as Single Member LLCs they file nothing as disregarded entities and each rental is put on the 1041's F8825.

@Accountant-Man 

These investors are so brilliant they don't need lawyers.  It's strictly DIY with forms they download if not included already in the seminar materials.  Lawyers might have suggested a better alternative, like an S corporation, or to check with a good insurance agent if they're worried about limiting their liability.  

For years I have been asking people if they have ever heard of an LLC being sued without the individual owner/manager also being named as a defendant. No examples yet.  Meanwhile, most of the DIY crowd has no idea what an umbrella policy will do for them.  

I don't think an S Corp is a good idea for real estate.

@sjrcpa  "I don't think an S Corp is a good idea for real estate."

I don't either, in most cases.  But most of these seminar cult followers are too independent to hold a real job, so there's a lot of self-employment involved and a lot of effort to avoid Social Security taxes while maintaining cash flow.  

And a 1040 with 4 rentals on a Schedule E is probably higher on the list of IRS audit priorities, than an 1120-S with the same numbers.