Land Trust To Sell Acres?
Hi i am in the process of buying ten acres with a home on it. Zoning will allow me to break up into 2 acre lots. I need to raise some capital to pay the overall note. If the propert is in a land trust can I then divide the lots and sell the owner will carry without have ing to pay off the original note ?
Not my area of expertise, but here are a few thoughts.
You'll need to get the land properly rezoned, divided, and developed as designated by the city/county. Once that is done the trust will own 5 separate parcels instead of one. They would then be sold by the trust to the buyers.
Quote:Thanks I understand it needs to be divided. The main concern is selling the lots with having problems with the exsisting loan. Jim
On 2003-12-21 19:14, hibby76 wrote:
Not my area of expertise, but here are a few thoughts.
You'll need to get the land properly rezoned, divided, and developed as designated by the city/county. Once that is done the trust will own 5 separate parcels instead of one. They would then be sold by the trust to the buyers.
You will need to express to whoever you are borrowing money from exactly what you are doing. There basically needs to be wording that will allow the mortgage to transer from 1 deed to all deeds. There also needs to be a partial release provision specifing what amount will constitute a release of one lot so that when you sell the lot you can convey clear title with no mortgages.
I have not yet done this but I am also 98% sure that you will have to go get your own financing because of the reasons stated above. You may be able to present your loan request favorably. A good book is the Real Estate Finance and Investment Manual by Jack Cummings[ Edited by myfrogger on Date 12/21/2003 ]
Da Frogger spoke and it was good.
Be sure to check do you have to file a full subdivision or can you simply survey and break it into the smaller parcels. If you can then your way is clear. I hope you have a good control on the lender. You merely sell him by showing him the advanced safety of many new owners over the single entity of the Land Trust. Just a good sales job.
As a matter of principal I would try and hold onto one parcel for Auld Lang cause with these new owners, some of them may be buying to create and in that creation may be a tremendous increase in property value. And thats fun.
I am looking for more land in and around the San Fernando Valley. Help.
Split the Aces. Lucius