Posted by LeasePurchase on June 04, 2005 at 12:16:56:
I do not recommend ANY Lease Option Courses and it’s no secret that I am Bill Gatten’s #1 Fan and one of his Top Producers.
There is no better system or course than the NARS PACTrust System. It’s not even close. I’ve used the system for over 4 years now and it just keeps getting better.
Rent to Own with a Land Trust - Posted by ron
Posted by ron on June 02, 2005 at 20:38:06:
What are peoples thoughts of buying on a lease option
with a land trust, and if you need to assign it or sell it later just changing the beneficial interest.
Also could someone explain the diagram of how this would be done in connection with buying through an IRA, buying the lease option with a Land Trust?
Re: Rent to Own with a Land Trust - Posted by LeasePurchase
Posted by LeasePurchase on June 03, 2005 at 17:18:00:
A Lease Option and a Land Trust are two entirely different things and have no relation to each other. You are either going to do a LO or you are going to use a Land Trust and assign beneficial interest.
In a Land Trust the resident does not have the option or the obligation to purchase. In a Lease Option or Purchase they have the option or the obligation to purchase. In a “Properly” formed Land Trust, the Resident will have the First Right to purchase at a future date for Fair Market Value minus any contributions they have made to the Trust.
Many investors beleive that they can setup a Land Trust and then Lease Option the property to the Resident from the Trust. This is not correct and defeats the purpose of the Land Trust.
Using a LO in or out of a Land Trust still requires a foreclosure instead of a simple eviction. Having the Resident as a beneficiary of the trust and then lease the property from the trust with only the right to purchase at fair market value on or before termination of the trust eliminates the need for juditial foreclosure and allows for simple eviction in the event of non-payment or any valid reason for eviction.
Using a Lease Option/Purchase allows and gives an Equitable Claim of Interest in the property to the Tenant/Buyer which means they may further encumber the property in a legal action such as Bankruptcy, Divorce, Judgements, Liens etc.
If “Properly” Stuctured, you can accomplish all the features and benefits of ANY form of Seller Assisted Financing including Lease Options, Lease Purchase, AITDs, Contract for Deed, Wraps, Rent-to-Owns etc. without any of the enherent legal risks of such methods.
Once a Trust is setup you or any beneficiary may have the right to sell their respective “Beneficial or Equitable Interest” in the Trust as long as it does not infringe on the interest of the other beneficiaries, much like selling an option.
I use my Roth IRA to purchase Options to Acquire Interest in a Seller’s Land Trust everyday. From my $10 Option Deposit I may get Upfront Profits, Monthly Cash Flow, Equity, Note Reduction, Appreciation, etc. all while someone else is making the payments and maintaining the property without any Risk or Liability to me or my Self-Directed Roth IRA.
Re: Rent to Own with a Land Trust - Posted by ron
Posted by ron on June 03, 2005 at 17:32:30:
I would most likely own the property on a lease option, and be the sandwich in the sandwich lease option. My idea from there was to lease option it again.
Now I’ve done the above a few times, the reason I brought in the land trust, is I was thinking if I bought 50 land trusts this year and wanted to assign or sell the rights that I have in the sandwich, I want to come up with the easiest way, and that’s why I was wondering instead of buying the lease option in my own name or with a company, could I just buy the lease option with the land trust on the lease, then when I want to sell or get money, I would change the beneficial interest to the next person that purchased my rights.
I wouldn’t be buying subject to and would not own the deed. are you saying I should have a seller, even ones not that motivated like regular 90% FSBO deed their property into a land trust, then I use money in an IRA to buy their property on a lease option.
I have not heard before that a buyer owning on a lease option would need a full foreclosure as opposed to eviction, is that just in certain states? because you we have a 6 months redemption period, and $5000 option money wouldn’t be enough of a reason to take on the risk of a 6 month process.
What Lease Option courses do you recommend?
I’ve read mostly David Finkel and Peter Conti
videos and a few of their books when it comes to
lease options specifically.
What do you think of the PACtrust by Gatten?