Posted by mei122@aol.com on July 26, 2006 at 16:24:32:
That’s interesting. How would the person who “owns” the S corp sign the trust documents, John Doe as President of XYX Corp, trustee of ABC Trust, or something to that effect?
Land Trust and Wholesaling - Posted by Amy Crosby
Posted by Amy Crosby on July 13, 2006 at 15:00:42:
Hi,
I am a wholesaler who has to use land trusts with real estate agents since their contracts are not assignable and I want to avoid double closings. My question is: I will be the trustee, myself, but who do I make the beneficiary when I haven’t found a buyer until the house is under contract? Should I just make my S-Corp the temporary beneficiary until the contract is signed and a buyer is found - who then becomes the beneficiary themselves at closing?
Any help is greatly appreciated, thank you!
Re: Land Trust and Wholesaling - Posted by colvegas
Posted by colvegas on July 20, 2006 at 21:12:53:
Rick is correct in that you would assign the beneficial interest to your buyer and it would be a quiet transfer and it is very clean and private.
You can make the S-corp your trustee and yourself a beneficiary not at all recommended for long trust hold times but for your purposes you should be ok.
You would setup the trust assign the beneficial interest to your S-corp then assign it to your buyer when they come into the deal…
If I can help further you can email me at colvegas07@hotmail.com.
Good luck…
Re: Land Trust and Wholesaling - Posted by Rick, the Probate Guy
Posted by Rick, the Probate Guy on July 13, 2006 at 19:39:22:
Why not make your S corp the trustee and you the beneficiary. That way, you’ll afford yourself some privacy and can take advantage of some personal tax aspects available to individuals (even if vested in trust for your benefit). Could even give you an extra layer of protection should your matter go sideways.
Later, assign your beneficial interest in the trust to your retail buyer/wholesale buyer or rehabber without recording a new transfer deed. Very clean.