Have the current owner QC over to the LT that YOU/your company is beneficiary of.
(make sure they also give you (limited) Power of Atty & sign the C.Y.A. Document)
Have your end buyer purchase FROM the trust via new mortgage OR purchase THE TRUST via CASH. Saves them stamps/taxes etc.
Yes, it’s legal AND profitable.
I don’t check here much so call w/ questions if you need asap answers.
Good luck,
James
989.213.6108
PS - Put an Option on the property via your Self-Directed IRA for a tax-free 80k investment.
When you do a land trust is the seller (homeowner) on the trust? How does the lender not see it when you flip the property? Where does this trust need to be filed?
My question is can you put a property in your land trust from a person in pre forecloure selling it for the price of the house of what they owe and then do a double close to a end buyer making a profit is this legal.example getting the property for 40,000 then selling it to an end buyer for 120,000 earning 80,000
creating a short sale with the bank for the 40,000 owed on the property is this legal
Starting from the bottom - Posted by John Merchant
Posted by John Merchant on October 09, 2007 at 12:35:49:
First, no trust is ever “filed”, whatever you meant…I suspect you meant recorded, and normally a trust isn’t recorded as the beneficiaries don’t want the info made public and no need usually.
How does lender not see it?
They can see any recorded deed or conveyance on any property they’ve lent on. But normally they don’t care as with ARM loan, their money is no more at risk or working any less effectively than if it hadn’t been sold.
Last, your first question…if you want to deed to your trust, then yes, you’d be the grantor and trust or trustee (lawyers, title companies and recorders differ over which they prefer) would be the grantee.
This is why most lawyers prefer the trust be named something that doesn’t contain the beneficiaries’ names, and the trustee isn’t the beneficiary,so the transaction isn’t quickly or easily spotted or seen by any potentially adverse 3d party.
Naming a good, honest and dependable trustee is not so simple so lots of times the beneficiaries’ lawyer is named.
He/she has a set of professional and legal standards (canons of ethics and State Bar rules) that he/she must live up to and his behavior is monitored by the legal profession so most of the time he/she is about as professional a trustee as can be found.