Can Anyone Answer This Land Trust Question ?
In regards to a Land Trust,
When the assignment of beneficial interest is assigned to Company ABC, at that point does this allow that company to sell the property? Say, for an increased pricetag?
Example:
I find motivated seller to sell me (Company ABC) their property at $100K on an AND, OR ASSIGNS basis...
I get Mr. motivated seller to assign beneficial interest of property to trustee (Company ABC)..
I find buyer within 30 days for property at pricetag of $130K..
I now have new contract #2 from trustee (Company ABC) to new end buyer (Mr. $130K)...
Question-
Can we do a so called "double close" where trustee (Company ABC) closes with end buyer (Mr. $130K) for the new price tag of $130K???
Mr. motivated seller gets paid his $100K in cash from the funding of deal #2??
Company ABC walks away with remaining monies??
I assume that the Title company would obviously need to know what is taking place...
If anyone could let me know if this scenario is full of holes or not I would appreciate it...
Brian
Gurus?
Generally using a land trust the way you have described is done usually to disguise a sale from the existing lender. If you are trying to double close anyway, Who are you trying to hide from? You have an assignable contract! Just do the deal!
Hmmm...Well now that I think about it, there would be no reason to double close would there?? It would be just one sale, from the trustee (Company ABC) and the new end buyer (Mr. $130K) right??
Would the original seller (Mr. motivated) have ANY papers to sign on closing date? Or just have his $100K sent directly to him via title company in the first $100K cash contract #1?
Wouldn't motivated seller have to do all the signing on closing date?
Am I missing something here?
Thanks for the input
You would not need to use a land trust unless you just want to conceal the transaction from the public's eye. Here in California it's possible to do a double closing so long as you disclose that fact to the "motivated seller".