Can You Assign A Subject2 House?
I have a property that I purchased subject2 1 month ago.
I have my LLC as beneficiary and myself as Trustee.
I have recorded the Warranty Deed to Trustee (myself as Trustee) with my county.
My plan was to originally hold onto this property and L/O to a T/Ber.
Now, I have an offer of $3,000 from an investor who wants to take over the deal.
I am wondering how exactly to transfer property in his name when he gives me the $3k assignment fee?
Here is what I'm thinking:
1. assign beneficial interest to my BUYERs LLC
2. certificate of resignation - to resign myself as Trustee
3. appointment of new Trustee - to make BUYER the Trustee
Is that all it takes?
Or, Do I need to give him a Warranty Deed To Trustee also?
And if I do, can I simply deed the property from my LLC to BUYER, as Trustee? (when he records this, my LLC name will be in public records..not sure IF i like that..)
Any ideas?
You can assign sub 2 properties, however you need to do a lot of CYA. More than you are proposing. (ie. a general release, assignee acknowledgements, bill of sale, Trustee change courtsey letter etc.)
Ensure that you have covered yourself before assigning to another investor.
If you assign your deal how do you continue to keep the promises that you made to the seller when they trusted you with their credit?
Just my opinion, but you getting rid of the property this way is a little bit short on ethics.
Jeff
Jeff,
I completely agree with you and respect your opinion. However when we are intially talking with the homeowner we make them fully aware that this may be a possibility. Furthermore if and when we assign the property to another investor we send a letter certified mail with return receipt to the person that we acquired the property from intially.