Quitclaim Or Land Trust?
I believe I am about to do my first subject to. Should I use a land trust or have the seller quitclaim? How does this work? I have heard some investors do not hide the sale from the lender.
By the way, FMV is 63k, payoff is 53k, there's $650 in taxes. Is this a decent deal? I have a friend who wants to rent it for his employees for $700 and the note is $539.
Thanks![ Edited by arborlis on Date 07/06/2004 ]
Hello,
Let's look at the numbers first.
Pay off is 53 & FMV is 63? That's 10k in your pocket -minus the taxes of course.
700-539 = 161. That's a good number.
Now, do you pay for insurance & taxes, or does the owner?
In regards to the quit claim or trust... I'd have'em quite claim it to the trust.
On the quit claim, the seller just indicates that such-&-such trust now is the deed holder/owner. Now your trust owns it.
Thanks,
OTW :-D
Actually another step is required in my mind. The trust should be in the property addresses name etc. and you should be the trustee, then you need to have "beneficial interest" signed over to you. You know have the deed, control as the trustee, and ownership of the beneficial interest.. You are now the owner
[addsig]