Selling Sub2 On A Wrap
I have several sub2 's in land trusts. I want to sell one of them on a wrap. I was wondering how selling on a wrap works. I understand the concept, but I have a few questions. I bascially want to sell it to them on a 3 year ballon. How do I transfer ownership? Do I just make them the beneficiary of the Land Trust? And how does the internest statement work at the end of the year so they can take the deductions.
I talked to one attorney already who was recommended by another REI, but he was clueless.
PS I am in TX , so rule out Contract for Deed as an alternative.
I'm not from Texas, so why is a Contract for Deed not available to you?
Thanks,
Robert
[addsig]
They changed the laws recently that do not make it favorable for selling on CFD. For example, in other states if you sold a house on contract for deed and they made all the payments except the last one, by definition, you do not need to give them the title. However, this is not the case in Texas any longer, they now have an equitable internest in the property less the last payment. In otherwords, once they have paid for 51% of the house, they own more of it than you.
Of course I am not a lawyer and I don't read law books, but this is how it has been explained and how I understand it to be until I hear otherwise.
Very interesting. But in the end, it sounds like the state is just watching out for sellers.
Thanks,
Robert
Quote:
In otherwords, once they have paid for 51% of the house, they own more of it than you.
Interesting. If you do a 2 year cfd how possible would it be for them to have paid 51%? Am I missing something? :-?
[addsig]
That was just one example. However, I would like to stay on the topic of selling a sub2 on a wrap instead of whether or not CFD is a good way to sell in Texas.
Thanks