A Practical Question.............

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Signing a warranty deed to trustee with the name of the trust set to reflect previous owner to avoid seasoning issues.

When you are dealing with a person with some actual brains what is the best way to approach them and make them feel comfortable with creating a trust in their name?

It just seems so sketchy. I don't want to scare this seller off.

any advise?

ps - deal breakdown, owner lives in canada, he lease optioned the prop to a couple who have been paying the note for 5 years. Couple breaks up, note isn't being paid, spoke with canadian and he is willing to deal. He strikes me as a genuinly nice guy. How do I tell him I want to set up a trust in his last name without it sounding like a scam?

[ Edited by davidbarnes on Date 04/13/2004 ]

Comments(5)

  • KyleGatton14th April, 2004

    Be honest. Quite simply. If he is smart dont hide anything, tell him you are doing X and want to make X. speak matter of factly and precise. Try to be more of a businessman, and less of a salesman. Its 70% of how you say it, 20% of how you appear, and 10% of what you are actually saying.

    Good Luck,
    Kyle

  • davidbarnes14th April, 2004

    thats good advise. thanks. I have to weigh that advise versus the risk of scaring the guy off anyway.

    interesting. I suppose I'll need to give the guy a compressed version of "trusts 101" to make him feel comfortable with it.

  • tinman175514th April, 2004

    Most investors I know who do that entice the seller with extra cash bonus at the closing.

    Lori
    [addsig]

  • InActive_Account14th April, 2004

    I feel your pain. Trying to explain a trust to someone is almost like trying to explain, "How to build a watch".

    The more detailed you get the more confused they get. One thing ,sure and certain, is that if they don't understand the trust concept ( {they will not} Question: How long did it take you to understand trusts??.It took me a couple of years.) they will invariably say, "No".

    Therefore, the trust is not what you should be selling. The trust is just the way the deal will be held. You should be examining the sellers motivation, needs,wants,fears, the selling the terms,conditions, and price.
    Once you have a deal. You simple state that for everyone's protection the deal will be held in their name ,the "Joe Six-Pack Trust".

  • davidbarnes14th April, 2004

    yeah my deal is all squared. thats not the issue. Like you said, and like was said earlier; just try to be direct and rapidly move thru it.

    damn these seasoning issues are a pain in the butt.

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