Explaining the Equity Holding Land Trust to Sellers
2.)I will merely become a beneficiary with you in the trust rather
than your needing to put my name on the title as an owner.
3.)...This way the property is PROTECTED from judgments, divorce
actions, bankruptcy, state and/or federal tax liens, criminal
prosecutors liens can't touch a property in an Equity Holding Trust.
4.) We then agree that I will sell or refinance the home in a few
years, say 3-4, your choice...and that is when I'll take the title and
finance it in my own name.
5.) This is virtually the same as buying any other way: EXCEPT that
you need never worry about me, the property, the SAFETY of your
Title, nor any lender concerns over transfer issues!
-###-
THAT'S IT for this Week and keep us informed of your progress!
Much Success!
Derrick Ali
than your needing to put my name on the title as an owner.
3.)...This way the property is PROTECTED from judgments, divorce
actions, bankruptcy, state and/or federal tax liens, criminal
prosecutors liens can't touch a property in an Equity Holding Trust.
4.) We then agree that I will sell or refinance the home in a few
years, say 3-4, your choice...and that is when I'll take the title and
finance it in my own name.
5.) This is virtually the same as buying any other way: EXCEPT that
you need never worry about me, the property, the SAFETY of your
Title, nor any lender concerns over transfer issues!
-###-
THAT'S IT for this Week and keep us informed of your progress!
Much Success!
Derrick Ali
Comments(0)
Derrick,
Nice article. You referred to a attachment called 'EHTrust.doc'. How can I get this?
Thanks!
Where do you as the buyer get the monthly cash flow to cover the sellers payments for 3 or 4 years?
The Resident Beneficiary (Tenant-Buyer) buys-into the Land Trust for the privilege of Ocuppancy and use of the property, Tax benefits and credits towards their purchase in the future.
They are responsible for monthly payments on the mortgage, insurance, taxes, and any maintenance repair issues that may arise. This is detailed in the Triple-Net lease agreement we execute.
please explain in further detail
Thankyou!
From your new Tenant-Buyer (A.K.A. Resident co-Beneficiary in the Trust with You and the Owner)
The RB makes, in addition to a 10%-15% down payment, all of the obligatory payments on the home...Principal, Interest, Taxes, Insurance etc. (We use a Triple-Net Lease.)
If the RB Defaults they would lose this Beneficial Interest and have no right to remain an occupant of the propertry.(sort of like a confession judgment in an MH Park.)
We suggest keeping 2 months pymts in a contigency reserve for the Trustee to cover Court/Eviction costs and ensure payments to the Lender as well as Taxing bodies.
Makes sense now huh? I did 2 deals last month with RB's Money and the rest went into my pockets (NICE!)
Say that I find a motivated seller.Then I find out what is their problem. I need more info on how to explain the Equity Holding Land Trust to them. Then after that say they agree, how do we profit from that.
Thank you