Posted by Alex ON on July 13, 2001 at 13:27:13:
Actually I am also very interested in this scenario.
James Lumley describes this method in his book: 5 Magic Paths To Making A Fortune In Real Estate.
Ray Como also speaks about it on one of his free audio tapes.
Does anybody have an idea how to do this and what kind of paper work is involved?
propety management company instead of trust? - Posted by Johnnymans
Posted by Johnnymans on July 13, 2001 at 12:36:08:
I had a thought, could you have the motivated seller hire your property management company, then sell the property using an AITD where the new buyer gets a Trust deed. The buyer pays the management company, mangement company pays motivated seller’s mortgage. New buyer (you) feels comfortable getting a trust deed…seller feels comfortable that it is a company making payments.
What do you think?
Any suggestions?
Re: propety management company instead of trust? - Posted by Bud Branstetter
Posted by Bud Branstetter on July 13, 2001 at 23:32:00:
Your problem using this approach is that the AITD is recorded and would violate any lenders DOS.
The more conventional way is to have the title to the property in a land trust. You personally or your limited liability entity is the beneficiary. You hire your C corp/management company to manage and collect payments. The owner is not public and no announcement is made of a sale.
It is easier to make the seller feel comfortable by having a neutral third party collect payments. I would feel more comfortable as the buyer if the deed is recorded to a land trust and my liabilty is protected by the appropriate entities. The AITD is not the thing to use in todays world.
Re: Sounds like a bag of worms - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on July 13, 2001 at 15:06:20:
To me.
The fact that a management company was collecting the payment, etc. would in no way eliminate the possibility of judgements attaching the property.
The “company” that you descrebe would require a Real Estate Brokers license in my, and most states.
The buyer/tenant and the seller would have no additional protection. They might be a bit harder to locate for whatever that is worth.
There would be one more additional level of expenses, that would be the fees and costs of the management company. No benefit there except for the management company.