A Question For William Bronchick - Posted by Bruce M. Huntington
Posted by Bruce M. Huntington on May 05, 2006 at 10:10:14:
Dear Mr. Bronchick,
I want to try working pre-foreclosures. I have access to funds from a private investor and also from a hard-money lender. My “education” to date leads me to believe that a Land Trust is a good way to go, but I need specific information about how to create and use a Land Trust. My dream would be a short phone call with William Bronchick (5 to 10 minutes). I gather from your website that doing “flips” as an LLC through a Land Trust is probably the safest and least expensive way to go. Attorneys ready and willing to create LLCs inexpensively seem easy to find. It seems far harder to find one that understands the value of using a Land Trust this way. I will have to stand on my tip-toes to afford any of your materials right now, but you clearly have the knowledge that I need. Is there one product among the many that you offer, that would be self-contained, and would impart enough information that I could safely create and use a Land Trust? If I can do a “flip” or two, I will be delighted to buy several more of your products. Many look quite interesting. Here is a thumbnail of what I am trying to do:
I find persons 60+ days into the foreclosure process. I research the financing on these properties looking for those that have substantial equity (30%+). For properties with adaquate equity, I contact the homeowners, looking for those who have given up and are resigned to losing their property. I explain that I can not save their home, but I can prevent them having a foreclosure on their credit report, and I may be able to get them some of their equity back. I already have my financing lined up. In any case, I pay the homeowner some money 5-10K to move out. I pay all the back payments and pull the property out of foreclosure. I think I want/need the property held in a Land Trust during this period. I then find a buyer for the property, and sell the property, at a discount if necessary. After the discount and after all other expenses, including the original move-out money, the reinstament money, the real estate commission and the closing costs, if there is any equity left (there better be!), I split that 50/50 with the original home owner. The idea is to not flip properties unless I can make at least 30K on the deal. In any case, several “experts” have told me that a Land Trust is the best way to do this. I do not want to pay big bucks to have a Land Trust created, then have the original home owner go bankrupt, and find out only then that the Land Trust was not written correctly, and I just lost my investor’s money, and now I am in deep trouble. I don’t just want a warm fuzzy feeling, I want to KNOW that things are on SOLID ground. Again, among your many splendid products, is there one that will safely take me where I want to go? By the way, I live in Arizona.
Respectfully,
Bruce M. Huntington
3008 E. Sierrita Rd.
Queen Creek, AZ 85243
(480) 643-0916
bruce687@yahoo.com
ps. For many years I was self-employed and had a six-figure income. I am now cleaning toilets for Fry’s Supermarket at $8.30 ah hour! I am sixty years old. I still have a few years of fight in me, but not just cleaning toilets! I want to RETIRE! I am more than willing to work at that. If I can make a go of this, I will be a wonderful testimonial! By the way, if you think there is a better place, or a better way to get started in real estate, I would be delighted to hear your advice.