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A Response Requested to a Realtor/Broker

Home Forums General EHTrust/EHT Topics and Creative Real Estate Financing A Response Requested to a Realtor/Broker

This topic contains 12 replies, has 0 voices, and was last updated by Avatar of gmckay gmckay 11 years ago.

Viewing 14 posts - 1 through 14 (of 14 total)
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  • #5196
    Avatar of gmckay
    gmckay
    Member

    I am looking for a nice reponse to the statement below sent back to me by a realtor I submitted an offer through. I will find another realtor (if necessary), however, I would like to educate too. I only submitted terms of proposal & NEO.

    “i had my broker read the lease-to-own agreement you sent over & he didn’t care for it. he sent it to our title co. & they sent it to their lawyers & they said a “land trust is not capable of holding title in mich”. the title co. says they want no part of this deal & my broker says he doesn’t either. he says there are ways of doing a rent-to-own agreement but no the way you currently have it structured. i’m sorry, i won’t be able to help you with the current paperwork!

    NANCE GREENE–(810) 962-0313 (MOBILE)”

    Thanks in advance for your recommendations and or responses.
    Respectfully,
    Greg
    517 980 0814

    #27395
    Avatar of areyes
    areyes
    Member

    I’d ask them why and what they didn’t like about your structure. I’d show them the benefits to risk chart if they were to do a lease option or lease purchase without the trust and with the trust. Let the broker explain to you what’s the best way for them to structure a rent to own and then just nail them with the risks and pitfalls of rent credits, non refundable option fees, due on sale clause, tax reassessments, judicial foreclosure versus eviction, lien attachments, quiet title action, equity claim, etc.

    Then I’d tell to the seller,”this is what your broker is willing to expose you and your property to all these risks”. How will he mitigate these risk? If he doesn’t have the answer to these, then she needs to find another broker also another title company. Better yet, get a copy of Scott’s lease option story. The broker will probably tell the seller to do a contract for deed or land contract instead of a rent to own.

    Maybe the actual proposal letter would help explain it since it shows the IRS code and federal code.

    Next.

    #27396

    It’s called being “Geeky.”

    #27397
    Avatar of gmckay
    gmckay
    Member

    Areyes,
    Do you have an electronic copy of the benefits to risk chart that you can email or direct me to as I do not.

    Also, I did send the proposal letter and awaiting a response.
    Thanks,

    #27398
    Avatar of homesavers
    NULL
    Member

    @gmckay wrote:

    he says there are ways of doing a rent-to-own agreement but no the way you currently have it structured. i’m sorry, i won’t be able to help you with the current paperwork!

    Here one response to this statement: Which way do you have of doing a rent to own agreement? Do not argue with them at all. Do not try to dazzle them with all your Land Trust knowledge and charts and all the other stuff.
    This is all assuming the Seller is willing to keep their current loan in place of course.

    Let them tell what they want to do. If it is not what you want to do then find someone else.

    #27399
    Avatar of areyes
    areyes
    Member

    i just talked to a FSBO/Realtor about her property and she asked me what i do and i told her “have you heard of a lease to own or owner financing?” she said she’s heard of both and she doesn’t want to do owner financing because she doesnt want her title to be affected. although she’s willing to do a lease to own and i went with that angle and started talking about what she understands.

    just ask them to explain how they would structure the rent to own and tell them we can do that and even make it better and beneficial for all parties.

    #27400
    Avatar of nmc
    nmc
    Member

    gmckay said:

    “he sent it to our title co. & they sent it to their lawyers & they said a “land trust is not capable of holding title in mich”. “

    You could respond:

    Your lawyers are correct, a land trust is not capable of holding title. However, a Trustee is capable of holding title in any state in the USA.

    For asset protection purposes, a Trustee should be an insured, bonded, professional, Corporation that is only involved in the business of being a Trustee. The Trustee should charge fees in accordance to industry standards, and should have specific duties spelled out in the trust aggreement……………

    …………….blah, blah, blah, you are a Realtor who doesn’t know squat about Land Trusts; and instead will probably suggest another CRE option that will end up hurting your client and then you will end up getting sued for not fully explaining the risks of a Lease Option/Purchase…….

    (wouldn’t it be nice if this approach actually worked)

    Anyways, homesavers is right, don’t argue with them, instead ask them questions.

    What way do you suggest?

    When they answer that question (Lease Option, Lease Purchase, Contract for Deed, etc..) Ask them if that option would protect their client from a lawsuit involving the Investor or the Tenant in the property?

    Ask them if that option would give the Tenant an equitable interest in the property?

    Ask them if that option would allow their client to simply evict the tenant versus Judicial Forclosure?

    Does your client want to fix toilets and be responsible for maintanence on the property?

    Does you client want to make sure every month that the PITI is paid?

    Does your client want to be responsible for evicting the Tenant and then fix all of the things they broke because the Tenant didn’t have a good chance really purchasing the property (14% of all Lease Options buyers actually end up buying the property).

    Is Safety important to your client?

    Should your client do the Safest method out there for a CRE transaction?

    Neil

    #27401
    Avatar of mtnwizard49
    mtnwizard49
    Member

    “i had my broker read the lease-to-own agreement you sent over & he didn’t care for it. he sent it to our title co. & they sent it to their lawyers & they said a “land trust is not capable of holding title in mich”. the title co. says they want no part of this deal & my broker says he doesn’t either. he says there are ways of doing a rent-to-own agreement but no the way you currently have it structured. i’m sorry, i won’t be able to help you with the current paperwork!

    1. Tell their brilliant attorneys that the land trust DOES NOT HOLD TITLE. The Trustee holds full legal and equitable title as a corporation.

    2. Tell the broker he needs to study more.

    3. Since the broker will not help, you should be able to work directly with his “client” since the broker has declined to do so.

    4. Find a new title company.

    #27402
    Avatar of kevinscott
    Kevin Scott
    Member

    Real estate brokers and real estate agents pretty much operate with two FEARS or two OBJECTIVES in mind…
    1) Am I gonna get my commission
    2) Am I gonna lose my license (think little kid & boogyman fear!)

    My personal view is NEVER, and I mean NEVER try to “educate”
    a real estate licensee, unless they are INTRIGUED, and are BEGGING you for more information.

    Why should you NOT even TRY to “educate” the others?
    Frankly my dear, They Don’t Give A Da*n!
    Sadly, the more you try to “educate”, the more they are calling
    you everything but a Child of God.

    They take your “education” as “advanced shiester-ism”.
    You cannot/will not win. Their mindset is set.

    Furthermore, more than 95% of all real estate licensed individuals
    are IN BED with lenders philosophically. Why? Lenders cut the commission checks! Actually, TITLE INS sends/wires commission instructions to escrow, and escrow cuts the checks. Either way, CRE thinkers are not generally welcomed by the vast majority of Real Estate Licensees.

    Yes, go ahead and MAKE YOUR OFFERS or send an initial pitch to a licensed person, if you must. However, if/when they CRAP ALL OVER IT, just move on. Don’t stop to “educate” unless you’re invited to.

    The OPEN MINDED licensee’s (and some do exist) WILL INVITE your education!

    True story…
    I remember once, I was in my weekly real estate agent SALES MEETING, when the guest speaker from the TITLE COMPANY went on a tirade, waxing eloquent on why Land Trusts are nuttin but scams, shams, being pushed by the flim-flams! Man-o-man. I was seething. I can’t stand the blatant preaching of IGNORANCE.

    I got up right in the middle of this nonsense, raced to my desk to grab my binder of all the LEGAL CASES I researched and photocopied myself from the Los Angeles County Law Library, downtown LA, AFFIRMING the use of Land Trusts in California (I did this research after my FIRST Gatten event way back in like 2001 or 2002 or so). And just as I was hoofing my way back into the meeting, it hit me. “Why bother.”

    Blank stares is really all you get from broker/agent types.
    Weirdo looks.
    Whisperings, murmerings, and fingerpointing in your direction.

    Forget about it, fellow Pacrats.

    Heck, Bill Gatten himself STARTED this biz preaching to real estate folk.
    Even HE has moved on to investors, and creative thinkers.

    Once in a while, you meet a licensed person that is open minded, or has a brain. Those occasions are uplifting, and also ohh so RARE.

    Bottomline…don’t be surprised when the licensee rejects you.
    Just don’t waste EXTRA time on them, unless they ask/want you to.

    Sorry for the long take here.
    I’ve had way too many disappointing conversations with other licensed people, when me and them coulda, shoulda, woulda, been going to the bank, and gettin paid for actually HELPING their clients!

    #27403
    Avatar of homesavers
    NULL
    Member

    Well said Kevin. However, not all licensed people are spooked by creativity. Most stay far from the line, in the safe zone, where most of the Brokers and their agents play. You wont find any wealthy people doing what everyone else is doing. All be it, Mr. Bill Gatten’s program is a differentiation from the other creative real estate folk. This is what sets him apart from the hundreds of other creative real estate systems for sale out there. Bill has a complex system but that is what you need if you get sued.

    You were right on when you said,

    My personal view is NEVER, and I mean NEVER try to “educate”

    Keep it simple but you are going to have to play by their rules if you want to do a deal with them. It is their world.

    #27404

    Kevin, excellent post and I couldn’t agree with you more. The only educatoin required of a Realtor is in the OFFERs we make. If they don’t get it, they don’t get it. You just need to get good at saying, “NEXT”.

    #27405
    Avatar of socalgal
    socalgal
    Participant

    Is there some way the NARS strategy can be simplified? A confused mind says “no.”

    #27406

    This is a question I get quite often and I don’t get it. Sure, there is a lot of documentation but the “Process” is as simple as it gets.

    1. Place property in Trust
    2. Lease or Sell from Trust
    3. Terminate Trust and Distribute Profits

    It can’t get much simplier than that.

    The only difference between using the EHTrust and not using it is that it goes in Trust first. The Owner/Trustee now Sells or Leases the property. It simplifies things since you no longer need all those bogus Seller Assisted Financing documents and methods and when selling it outright keeps it all private.

    Like I said, “how can it get any simplier than that”?

    You learned how to drive a car in High School. All you do is insert the key and hit the gas. You didn’t need to take Auto Shop or learn how to tune it up to drive it.

    Just MAKE OFFERS and quit trying to figure out how to tune it.

    #27407
    Avatar of derrickali
    derrickali
    Member

    BUMP!!!
    @Scott_L._Moyes wrote:

    This is a question I get quite often and I don’t get it. Sure, there is a lot of documentation but the “Process” is as simple as it gets.

    1. Place property in Trust
    2. Lease or Sell from Trust
    3. Terminate Trust and Distribute Profits

    It can’t get much simplier than that.

    The only difference between using the EHTrust and not using it is that it goes in Trust first. The Owner/Trustee now Sells or Leases the property. It simplifies things since you no longer need all those bogus Seller Assisted Financing documents and methods and when selling it outright keeps it all private.

    Like I said, “how can it get any simplier than that”?

    You learned how to drive a car in High School. All you do is insert the key and hit the gas. You didn’t need to take Auto Shop or learn how to tune it up to drive it.

    Just MAKE OFFERS and quit trying to figure out how to tune it.

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