Assignment Of Sub2 Property
I'm looking at a property that an investor wants to assign to me. He took the property Sub2 and put into a trust. The payoff is $113k and comps in the neighborhood are $135-140k for similar homes. He's asking $2.5k for assignment fee and the May mortgage($1225 PITI) is now due. I'm thinking this would make a good L/O property.
What do I need to look out for when assuming this property? Any forms I should file? How to transfer the trust to me? This will be my first property and want to make sure I don't make any mistakes. Does this sound like a deal?
Thanks,
Joe
Do a pencil search first to make sure no liens are not on the property with a title company. Do a land trust with the owner investor, and the warranty deed will be the owner of the property, and then make the llc the beneficary of the land trust. You will need a lease option contract for the deal with the tenant buyer. You will also need trust agreement forms. :-D
Correction the deed warranty will go into the land trust and the owner of the property will be whom ever you appoint as your trustee and the llc will be the benficary of the trust.
Thanks. I just spoke to the investor. The property is already set up in a trust. He will simply sign over power of attorney and authorization for information release. I will be named the new benificiary of the trust and I need to appoint a trustee.
Should I still do a title search to cover myself?
Am I missing anything else?[ Edited by bartendjoe on Date 05/07/2004 ]
You should still do a title search. Always protect you six (back). Other than that it sounds pretty good. Much success.
Yes you need to do a title search and/or title insurance.
When using a trust it is very important that you use someone you trust as the trustee. This can be anyone and banks may do it as a service. Either way you need someone that won't screw you over. I would set up a new trust and transfer it there so that you can choose who is the trustee (you can be the trustee and your llc the beneficary)
Title search through title company or is there an online service to do this? We are set to simply sign over documents at notary public. Should I require this be done at a title company? Any idea the cost for a title search?
Thanks for your responses.[ Edited by bartendjoe on Date 05/08/2004 ]