What's Special About the PACTrust & EHTrust in Real Estate?

The PACTrust and EHTrust are unique tools in real estate investing that offer innovative solutions for property ownership, asset protection, and creative financing strategies. Here's what makes them special.

1. Comprehensive Asset Protection: The PACTrust and EHTrust offer robust asset protection by holding the property in a trust, shielding it from potential legal claims, judgments, or liens against any of the beneficiaries.
2. Enhanced Privacy and Anonymity: Both trusts help keep ownership details out of public records, offering a high level of privacy and anonymity for all parties involved. This is particularly useful for investors who prefer to keep their property ownership confidential.
3. Flexible Creative Financing Options: These trusts are designed to support creative financing strategies such as lease-options, wraps, and “Subject To” purchases. They offer more flexibility than traditional financing methods, accommodating the needs of all parties involved in the transaction.
4. Shared Equity Benefits: The PACTrust and EHTrust facilitate shared equity arrangements, allowing multiple parties (such as sellers, buyers, and investors) to share in the property's appreciation over time. This feature is beneficial for structuring deals where all parties can benefit from the property's growth.
5. Protection Against Due-On-Sale Clauses: These trusts are specifically designed to provide protection against due-on-sale clauses in mortgage agreements, allowing investors to take over existing loans without triggering the lender's right to demand full repayment.
6. Tax Advantages: The PACTrust and EHTrust can provide unique tax benefits, such as maintaining mortgage interest deductions, minimizing capital gains taxes, and offering other tax advantages depending on how the trust is structured.
7. Enhanced Control and Management: Both trusts provide greater control for the investor over property management and decision-making without interference from other parties. This control allows for better alignment with the investor's goals and strategies.
8. Legal Flexibility: The trusts are designed to comply with various state laws and regulations, offering a flexible tool that can be adapted to different legal environments and investment strategies.