How to Legally Condo your 2,3, or 4 Unit w/o ReZoning?
Use this amazing technique to acquire 2, 3 or 4 unit properties For Sale by Land Lords!
Go to their tenants and ask them if they'd like own their apartment unit (or both) and that you can help them to do so once you buy it from the seller.
This is how you can Legally
"CONDOMINIUMIZE" them through using an Equity Holding Land Trust?
An example of the strategy you could use would look like this:
The Tenants become a Resident Beneficiary of the (nameof Seller) Land Trust that you help them to create for Asset-Protection and Privacy reasons and MORE IMPORTANTLY SELLl the Property to YOU with NO Credit Check, DownPayment (from your Pocket) nor Getting a New Bank Loan!
And for which the tenant Buyer pays you a ‘Buy In’ amount of say 10% or 15% upfront fee that you give to the Seller as security until you Refinance the property in say 2, 3, or 5 years down the road.
If the Tenants or prospective Buyers from Ads you run don’t have all the money to Buy In
(5% to 7.5% each for a 2 Unit, 3.3%-5% for a 3 Unit property, or 2.5% to 3.75% for a 4 Unit)
You can have them sign a Note for Beneficial Interest in the Land Trust to acquire Ownership of their particular unit and/or others Units they wish to purchase an interest in.
The pay out could be spread out say over a 2 or 3 year payment (hence your AD for New Blood could read: 2-3 EZ Payments moves you in).
This is all done Lawfully B/C you have granted them a Beneficial Interest in the Land Trust which owns the home(2,3,or 4 Unit).
The Land Trust “Quasi-Condo” cannot be done for 6 Units or higher B/C it needs to be considered a single family residence by HUD standards.
Tenants could also receive Tax Benefits as (10% minimum) co-Beneficiaries of the Land
Trust with you.
And therefore YOU can earn a higher than Rent amount from them to belong to your Trust and gain ownership of the property in a SAFER way than Lease Option or Contract for Deed.
There is NO cost to you for re-Zoning for the Condo Conversion B/C technically YOU AREN’T CONVERTING, just placing the property into a Land Trust.
(Of COURSE with special Equity Holding Provisions that I can help you Arrange the drafting for your tenant-buyers)
Costs generally run anywhere from .5% to 2.5% of the value of the property to place into a Trusteeship---Have your interested Tenants to foot the bill for you.
The Title to the home will be Protected from Liens(Creditor/State or Federal) and legal issues of any Tenant-Buyer or You and Your Wife!
Also, in case they are worried about QUALIFYING---they can SAFELY assume(take over) your mortgage loan obligation without triggering the Due on Sale clause which forces a loan to be paid immediately!
So the Tenant Buyers Don’t Need a:
-Super large Down-Payment
-No Credit Check
-No Bank Qualifying and
-No New Loan
Nor do you have to pay any Sales Transfer costs/Taxes (atleast NOT UNTIL the Trust Terminates---20 Years Max.!)
The Tenants will now be responsible for the Maintenance, Upkeep, Taxes, Insurance and/or Repairs along with the existing Mortgage loan.
And You will have Unloaded a Landlord Headache for the Seller + created an income stream for the next 2 to 5 years that you will never have get a call in the middle of the night to lift a finger and unplug toilets, replace light bulbs, holes in walls.
Much Success!
Derrick Ali
Derrick
Just found this article today, so wanted to tell you thank you for same. I'm fascinated by possibilities here & glad to find a resource like this. And you & your expertise.
John