DOUBLE CLOSING VS LANDTRUST FOR SHORTSALEs
Would you do a double closing or start a landtrust for properties you were shortsaleing that have no equity.
I believe if your flipping a property to an end buyer that had no equity then why would you start a landtrust. What proceeds would you have to put into the trust to assign to a beneficial interest.
I mean can the homeowner trust received proceeds from a shortsale where the bank see the trust as a seperate entity from himself.
Please double closing is a lot easier in my book provided you have a title company that knows how to do one,
The buyer will most likely need to have cash. SInce not many banks will fund to trusts they the buyer needs the cash to buy the trust.
That is simply not true.....the trust is not getting a loan in our system, only the end buyer. It is that juice that makes the whole deal go.
I have seen trusts get loans too - but it is full disclosure and the beneficiaries credit on the line. It is very rare...but I just saw Merchant Mrtg do it last week. We just assigned our beneficial interest for 10k.
How does this all look on paper?
when i approach the Home Owners with this scenario and they like it and we finally get to signing papers what exactly is there to sign besides the trust itself?
do you sign a sales contract even though as being the trustee you control most aspects of the deal? is a sales contract even necessary? if so, what do you put into an addendum to C.Y.A?
any input?[ Edited by GIP_financialGroup on Date 08/01/2007 ]
Can you do the foll:
Contract between home owner and trust (me as trustee); seller sign the beneficial interest my LLC; then LLC sells to end buyer?
what kind of discounts?
I do business in Chicago. What do you have?