Land Trust
I have a contract on a house we tried to sell as an assignment? Deal went south...I just had a conversation with a local investor who said to put the house in a trust , to avoid simultaneous closings,,,,,,He said he will charge $75 to show me how ....I'm not sure how a land trust can help assigning a contract. Please Help, Desperate.... :-?
First, talk to a good REI-knowledgeable attorney. They can help you with trusts and the proper paperwork. With the size of deals you have, you should find the best one in the state and make them part of your team.
As for the offer, I think he is using the trust to hide his control of the property. The seller puts the house in trust with the wholesaler as the beneficiary. He can then assign beneficial interest in the trust to his buyer for the assignment fee. The buyer then takes the property out of trust to close and no one knows the wholesaler was there.
I could be wrong, but that is something I've read about. Check with a good attorney.
Peter
If the current owner agrees, you can help them establish a land trust. There is a page in the land trust agreement that lists all parties that have a beneficial interest in the trust. If you are listed on this page as a beneficiary of the trust in the amount of $X, This would establish your part as a principal in the deal without having to close on the property yourself. The letter explaining distribution of funds at closing can list you and your dollar amount.
I have not done this, so my answer is just speculation. Find an attorney that understands land trusts, and enlist their services. There is certainly enough money in the deal for you to afford this, and it should only take a couple of hours to complete.
Good luck,
Jeff
Jeff ,
I have done many deals like this. You are correct, but someone has to make the decisions and that person is usually the Trustee.
Lori
[addsig]
Lori,
I'm not sure I understand your comment.
Are you saying that the trustee will recieve all the funds at closing, and distribute them from there?
If so, I'm OK with that.
Please explain further.
Jeff