Need Advice Quickly
Hi Everyone.....
Have a seller that needs to get out of 2 properties that I would like to do a sub2 on. I have presented him with this offer and he is willing to go the sub2 route so the hard part is done.
However our attorney thinks that sub2 is too risky with the DOS clause. I am thinking about doing the deals regardless.
So my question is this. We have an LLC..
should we do a land trust (land contract in wisconsin), a contract for deed or what is our best option on this.
Thanks
Your attorney cannot possibly tell you to do something so stupid as a sub2 - he has his own butt to protect - it's like having a dentist tell you it is a good idea to fill your own cavaties. However the real world is significantly different from the protected world of acountants and attorneys - where they expect us to make the money we need to pay them their high fees without taking a little risk is beyond me.
Just to clarify, a land trust is WAY different than a C/D or Land contract - although according to my own attorney, the landtrust option does not adequately protect me from the DOS on a sub2 - but i think his advise is too conservative. You should consider pursuing the Land Trust option as this is clearly safer than a simple Sub2.
The most likely reason i have heard about the DOS being invoked is late payments. as long as the seller is current, i think you have a good chance of making it 12 months so you can do an easy refi.
Please do let the rest of us know how you end up closing the deals!