Posted by asdf on December 12, 2000 at 14:44:40:
The trustee agreement would detail this to handle replacement trustee property transfer and to ensure your property is not attached to the trustee’s legal snafus. The corporation’s problems would not attach to your property. Any agreement you have with a trustee should clearly detail this regardless of whom the trustee is to prevent a dishonest trustee from doing anything without the beneficiaries’ permission.
Unanswered Pactrust - Posted by Houserookie
Posted by Houserookie on December 11, 2000 at 14:15:06:
Has anyone used the Pactrust to control properties
1-12 months, and real estate agent as trustee?
Since the beneficiaries are really the people in countrol,
I thought maybe I can convince sellers to use this
instrument, yet stil guarantee the agent his commission.
Thanks
Houserookie
Unanswered Pactrust - Posted by Bud Branstetter
Posted by Bud Branstetter on December 12, 2000 at 11:05:31:
Please take this as an attack on your knowledge base of the PACtrust not you personally. Ther are all the FSBO’s and expired’s that can keep you busy without chasing listed properties. Teach a realtor how to prospect for you and you spend 6K cash on a 100K+ property where there may only be 10-15K equity. Go directly to the lisiting agent and save 3K; but you have to overcome their ingnorance and proclivity to do only what they know. The cash must come from the new occupant if you want to be successful. Two points-a contingent trustee is named in a Pactrust and the realtor fee is better paid upfront. It may easier to get the seller to defer their equity than it is to get a realtor to defer part of their commission.
what if your trustee goes out of business ? - Posted by will
Posted by will on December 11, 2000 at 17:21:38:
stuff happens . how can you protect yourself?
Re: Unanswered Pactrust - Posted by dewCO
Posted by dewCO on December 11, 2000 at 16:43:57:
Haven’t used it myself, but from what I’ve read, I don’t think you want/need the RE agent to be the trustee. They can be assured of getting their money by becoming one of the co-beneficiaries if I’m not mistaken, as the beneficiary interest can be split multiple ways.
Once again best used on a property where both the seller and agent are MOTIVATED. IF the agent thinks it can sell without doing a PACTrust there is NO motivation/interest in waiting for the commission. Works best when agent is convinced that without the PACTrust there will be ZERO commission, because it won’t sell! Most agent swant their money NOW and they want ALL OF IT, NOW. (Like an over encumbered property.)
Not that many folks here are using PACTrust, I don’t think. Their site would be the best place to get actual answers I think.
Re: Unanswered Pactrust - Posted by asdf
Posted by asdf on December 11, 2000 at 16:40:09:
Houserookie-
If it’s a PACTrust then you will have Bill Gatten’s people as the corporate trustee. It is to your advantage to have a corporate trustee-corporations don’t die,etc. so no probate. Your realtor could be a beneficiary to get their money.
Re: what if your trustee goes out of business ? - Posted by asdf
Posted by asdf on December 12, 2000 at 14:49:06:
Any land trust or PACTrust has replacement trustee provisions to suit the beneficiaries needs.
For Dew…Re: Unanswered Pactrust - Posted by Houserookie
Posted by Houserookie on December 11, 2000 at 17:46:50:
HOw would this be any different from a regular land trust? You can place mulitple parties as beneficiaries in a land trust.
SEcondly, do you recommend using this instrument to control properties in the short term.
Re: Unanswered Pactrust - Posted by HOuserookie
Posted by HOuserookie on December 11, 2000 at 17:42:03:
Thanks Dew…
I haven’t used a Pactrust myself, but I think it will solve the seasoning issue, the commission issue, and the financing issue.
Re: Unanswered Pactrust - Posted by Houserookie
Posted by Houserookie on December 11, 2000 at 17:39:58:
But corps can be dissolved or go out of business?
Re: For Dew…Re: Unanswered Pactrust - Posted by asdf
Posted by asdf on December 12, 2000 at 14:39:29:
Differences-
*Triple net lease
*Trustee can’t charge for bill collections or IRS gets
unhappy. PACTrust does not charge for this service.
*Not worthwhile for short term such as flips. Just use a regular land trust there. A PACTrust rents the property out to a tenant, so if you aren’t doing a rental type situation a PACTrust would not be an option.
*Head over to www.cal-equity.com for details. There is a good article written as a response to a First Tuesday story within the links there in addition to FAQs and a PACTrust discussion board.
Re: Unanswered Pactrust - Posted by asdf
Posted by asdf on December 12, 2000 at 14:46:01:
The trustee agreement would detail this to handle replacement trustee property transfer and to ensure your property is not attached to the trustee’s legal snafus. The corporation’s problems would not attach to your property. Any agreement you have with a trustee should clearly detail this regardless of whom the trustee is to prevent a dishonest trustee from doing anything without the beneficiaries’ permission.
Gatten would be able to answer how they would handle this since it is a pretty common concern for a beneficiary.