Yes you can do it as long as the deed is in his name and he is willing. You can even wrap the land trust by selling on contract.
The question becomes is it advisable?
With a low priced house you have to be very careful on the owner occupant. Will they keep paying? Will they get laid off? Who is going to do the eviction, fix up? There may be cash flow even if there is no equity but the first time there is a problem, you have a problem.
Help!!! Land Trust on a Wrap… - Posted by Kevin(OK)
Posted by Kevin(OK) on April 27, 1999 at 09:14:57:
This is a follow-up to a post from a few days ago. House was bought by local investment L.L.C. at $23K (2 mortgages), sold for $37K on two wrap-around mortgages. The seller want out from under (still owes $35K, house comps at $38K and has a tenant in there who hasn’t paid in 3 mos). Can I use a Land Trust, then transfer to me, take subject to the wraps, and start making payments, or is this not legal on wraps.
The first problem here is that if the seller bought this property with a land contract, he doesn’t have a deed. He has equitable title.
In order to deed to a trust, the seller would need to contact the LLC, and have them deed the property to him. I’m guessing this isn’t going to happen?..it may be the reason you’re asking the question.