Using "Land Trust" To Hold Land And To Build/sell Houses Without Including Lot?
I am looking at the possibility of teaming up with a land owner and small city government to develop a low income housing subdivision. They are throwing around the term "land trust" to hold the land in and sell off the houses in the subdivision. The buyers would own the house but not the land itself.
I am not very familiar with this sort of arrangement. Where would this leave the original land owner in terms of profits for the land. Would they sell a fee structure in this case?
I always thought of a land trust as a managing entity for a real estate holding.
Anyone familiar with this process? How does this process work? What are the advantages/disadvantages to this method of development?
Please point me to past deals if you know of any. I need all the research and first hand experience I can find.
Thanks in advance
Thank you.
What other types of mechanisms are out there to divide off the buildings for the land?
I have also seen some difficulty in obtaining financing for condos. Are the lenders starting to lighten up on condos?