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Attny response of me Using Land Trust & Simul. Close

Home Forums General EHTrust/EHT Topics and Creative Real Estate Financing Attny response of me Using Land Trust & Simul. Close

This topic contains 36 replies, has 0 voices, and was last updated by Avatar of restequi restequi 11 years, 4 months ago.

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  • #23515
    Avatar of areyes
    areyes
    Participant

    now i know it – time to do it.

    ill offer the seller full price and ask them about the short sale as the next back up option. this applies only to those that are behind of course.

    also i take it this is done through a simple trust set up rather than the full EHT trust?

    #23516
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @areyes wrote:

    also i take it this is done through a simple trust set up rather than the full EHT trust?

    Alvin, you need to go back and read the whole post again, especially the part about… this is NOT A SIMPLE TRUST. It is a modified EHTrust, modified in that there is no RB or Use and Possessory Agreement.

    Once there are two or more beneficiaries involved with the right of one of those to sell or purchase the property it becomes an EHTrust Transaction.

    It involves the creation of…

    1. Option to Acquire an Interest in the Seller’s Trust
    2. Appendix #1 Purchase Offer
    3. Warranty Deed to Trustee
    4. The Trust
    5. Assignment of Beneficiary Interest
    6. Beneficiary Agreement
    7. Rider/s
    8. Net Cost Sheet
    9. Offer to the Seller/Trustee by way of a Standard Real Estate Purchase Contract
    10. Agreement and Acceptance of the offer by the Beneficiaries
    11. Letter of Direction to the Trustee to Convey the Title and Terminate the Trust
    12. Qualified and Approved Buyer ready to close (could be one of the beneficiaries)
    13. A Closing of the Purchase of the property from the Seller/Trustee
    14. Funding of the Loan
    15. Disbursement of Funds to the Trustee
    16. Trustee Disburses Funds as per the Beneficiary Agreement

    * In some case the Trustee only need to give a letter of disbursement to the Title Company and they will cut checks directly to the beneficiaries. In my deals, if the Title Company won’t do that I use one who will.

    As you can see, it is much more than a Simple Trust.

    #23517
    Avatar of getsmart
    getsmart
    Member

    hey scott, i am glad i found this thread, this is right up my alley.

    I have a few questions. I am still confused quite a bit. I have been told the same things you are saying but there is one thing that i still haven’t found the answer too.

    Ok, you work out the short sale, then you find the buyer. I got that. Next you use your funds to close the first deal so you will have a wet closing. You are using private funds because no lender is going to fund a trust deal.

    Now that you closed the deal with private funds, now you have a property that is owned by a trust where the trustee sells the property to the buyer. Here is where my question lies.

    Now how does the buyer fund the deal that is being held by a trust? We have used hard money to avoiding dealing with a lender in the case of a trust, now we are putting our buyer in the shoes we were trying to avoid.

    What do they do, when their lender doesn’t fund the deal because the property is still in a trust?

    #23518
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @GetSmart wrote:

    Now how does the buyer fund the deal that is being held by a trust? We have used hard money to avoiding dealing with a lender in the case of a trust, now we are putting our buyer in the shoes we were trying to avoid.

    What do they do, when their lender doesn’t fund the deal because the property is still in a trust?

    I’m not sure what you’re asking so I’ll answer this way. “BUYING” a property from a Trust is no different than any other sale. It doesn’t matter who the “Seller” is. What you may be referring to is if someone whats to refinance while a property is in Trust or purchase with a Trust.

    In our case it is like any other sale and the Trustee is the Seller. Our End Buyer is just simply buying a house and it doesn’t matter who the Seller is. I have never had any issue with a lender with the house being sold from a trust. The only thing I’ve ever had come up was the Title Co. or the Underwriter just wanting to see “Evidence of Trust” and that was just a simple process.

    You also need to remember, we are not at the title company waiting for the lender to approve anything. That has already been done, we are there to close, period.

    You’re playing a “What If” game that doesn’t need to be played.

    #23519
    Avatar of bill_gatten
    bill_gatten
    Participant

    Restequi

    Hey, Listen up here,

    Scott and others are being more than generous here, but to be honest with you guys, I really don’t feel that dispensing this amount of information to the general public for free is what we are all about. You know me…I give a lot and don’t ask for much in return, but when someone tells me they’ve spent thousands with other “gurus” but have no intentions of spending a dime with me, but still want all the information for free…that’s usually where my giving leaves off and my ticked-off-a-little starts.

    I don’t mind giving information to people without asking for anything in return, but I can’t help feeling a bit sponged down when it is done and then tossed back at me. That smarts a tad. Very shortly these kindsof threads will be relegated solely to the “Members Only” section. I don’t support this website and discussion board on air (not even HOT air) and its not here to teach Joe Q. Public how to do what you’ve paid me thousands of dollars to teach you. My suggestions is to keep what you know to yourself and just answer specific single questions as a gesture of kindness. Although, I admit, maybe I’m just having a bad day…if so, say so and I’ll change my mind (but damn!!).

    I respect you “Resteque” but when your getting smart is on my nickel (not to mentioned the free 3-day workshop you say you attended), then maybe we should exchange screen names as apparently I’m the one who needs a resteque pill.

    Grumble, grumble…mumble..

    #23520
    Avatar of getsmart
    getsmart
    Member

    @bill_gatten wrote:

    Although, I admit, maybe I’m just having a bad day…if so, say so and I’ll change my mind (but damn!!).

    I respect you “GetSmart,” but when your getting smart is on my nickel (not to mentioned the free 3-day workshop you say you attended), then maybe we should exchange screen names as apparently I’m the one who needs a smart pill.

    Grumble, grumble…mumble..

    Hi Bill, I don;t know you but have heard plenty of good things about. Maybe you are having a bad day or maybe i had a bad day when i posted the questions.

    I am sort of confused because i don’t remember saying that i attended any free 3 day workshop. I have only posted two times up to this point.

    When i posted my questions, i just noticed how informative this site has been for the trust topics and i saw a thread with concerns i had, so i posted.

    This is the only site that i have seen that has dug as deep into the trust topics i have seen. Maybe i should buy a course on the topic but i thought that’s what forums are for to ask questions.

    Sorry if i offended anyone and if i did let me know and i won’t come back to this site. I am insignificant since you already have so many members.

    I just remember mtnwizzard since he had always given me so much great information at other sites.

    Sorry to intrude. :oops:

    P.S. Get Smart was the name of favorite 1960′s tv show about a detective that always solved cases in a strange way.

    #23521

    @GetSmart wrote:

    Ok, you work out the short sale, then you find the buyer. I got that. Next you use your funds to close the first deal so you will have a wet closing. You are using private funds because no lender is going to fund a trust deal.

    Now that you closed the deal with private funds, now you have a property that is owned by a trust where the trustee sells the property to the buyer.

    Herein lies one of your Greatest Oppurtunities.

    You’re working Shorts or with a coach or Out-Source them.

    You get your acceptance, have the closing situation down and come up with private funds to pay off the Bank.

    Now, we talk Buyer.

    You’ve been advertising.

    Yes, you can sell to ones that have 20% Down and good credit, but who else calls ?

    What’s you Ad say ?

    What did you get for an LTV, on the Pay-Out ?

    70-75% ?

    If, you carry 20%, you may still make $5,000, which once a month is $60,000.

    On the people that call, what can your Lender get them, from one of their Pre-Qualifying sheets and a Credit Check ?

    WE DO NOT USE “DOWN”, anywhere, because we are not offering Financing with the Trust System, however, If your Ad Reads, ” Handiman Special $1 Down, Get Smart and Call Get Smart “, your Lender may be able to work something with them that would allow you to take a second and possibly pay some of their closing costs and still be within Appraisal.

    Now, you ran the Ad and they called.

    There will be OTHERS that call that CAN’T QUALIFY, for Anything.

    But, they have some Cash.

    You can’t help it if they really don’t have enough Credit, but they have some money and ability to make payments.

    BINGO.

    Emphasize to them that you are Completely Changing Course for them and NOT OFFERING ANY LOAN PRODUCT OF ANY TYPE, etc, But you do know how to get them into a nice House !

    You stick that Buyer onto http://www.prorealestatesource.com/ or bring them here to the Board and let us find them a home and make yourself some bucks or get into Bill’s System with his Success Pak http://site.landtrust.net/listings/index.php?page=out&id=19902&cid=348

    and even have them find their own Lease to Own or FSBO or Listed or ANY Property, since to have a Tenant “Buyer” ready to move in, you just ask the Owner if they can close in 14 days, because you’re ready.

    Does that make sence ?

    “Ready to Move in, $2,000 Down Call me ___”

    Then, bait and switch, although, that would be based purly on them not being able to Qualify as an End-User Buyer, of your Short Sale Property.

    You’re bringing Loans to your Lender ( with those that do Qualify for your Short Sales ) which is going to put you in a position to have them happy to send you their Dead Files, which you can use for Bill’s System and BUYERs are the KEY right now.

    Again, please don’t confuse wanting a “Down” on a Loan for an End-User Purchaser, with NO DOWN & only a Contribution to a Contingency fund using the EHTrust.

    That’s you’re Business.

    Provided you really do like the name, “Get Smart ! “

    #23522
    Avatar of bill_gatten
    bill_gatten
    Participant

    Get Smart, read my post again, it was pointed at the resteque due, not you. OK, maybe there as a little msprint thetre in the original…but hey, prove it. ;o)

    You are very welcome here.

    Bill

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