Land Trust To Avoid Property Tax Increase
I've been running numbers on many many properties and property taxes seem to always kill the deal. Since property values have about doubled in the last five years in my market it seems like every house that gets listed has a super low taxable value. So after purchase my taxes would at least double and in some cases go up 3X or 4X. Which leads me to a huge complaint...why do realtors list property and advertise 8.5% cap rate when it's based off super low property taxes?
Just wondering if this is possible...
Write in the purchase offer that the seller needs to set up a land trust with themselves as the initial beneficiary and transfer rights to me, the buyer? I could even stipulate who the trustee needs to be to save the hassle of changing trustee's. This would make 80% of the bad deals good.
I believe doing this would keep the sales price off the public records therefore making your property taxes not go up...?
Any thoughts?
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