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Could this strategy work for raw land?

Home Forums General EHTrust/EHT Topics and Creative Real Estate Financing Could this strategy work for raw land?

This topic contains 5 replies, has 0 voices, and was last updated by Avatar of just call me rich just call me rich 11 years, 5 months ago.

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  • #4898

    Could this strategy work for raw land? I have 2 properties I am looking at that are owned free and clear. Both have houses on them, rather 1 has a house AND 3 MHomes, with just under 15 acres of land while the other has a small mobile home AND just under 100 acres of land.

    I know a possibility would suggest the owner(s) get a mortgage for the cash they want, then work out an acceptable OFinance deal that could easily be covered by RB’s.

    I don’t care much about the house or mobile homes, just the land (not making any more of it) I know to put in a trust the mobile homes have to be part of the whole package. The real question I guess might be, is it possible to sell off some of the land if it is in a trust? (providing it can be subdivided, of course). Would it be possible to sell off the house and the mobile homes, with a little land, separately, and keep the bulk of the other land? In the great scheme of things, the property with the 4 residences on it could conceivably cover the mortgage payments on the small parcel. If the zoning will permit it, it may be possible to add some more lots for mobile or stick built houses, which could, in turn, pay for the larger parcel.

    Its all speculation at this point, just found these properties today and talked to owners. Still have mega research to do. Just wonder exactly how versatile the PACTrust and NEHTrust are.

    Thanks

    #26069
    Avatar of mtnwizard49
    mtnwizard49
    Member

    Why do you think they call it a LAND Trust?

    #26070

    gee, I don’t know….is that a trick question???

    #26071
    Avatar of joecain
    joecain
    Member

    Rich -

    First off, the answer to your question is yes, raw land may be placed into the Land Trust.

    If the current owner has a recorded title transfer deed on the property showing them as the legally vested title holder to said property and a tax assessor’s parcel identification number for each large lot, then they can place their property, with your help and the help of NARS of course, into their own Land Trust and assign you and/or others some of the beneficial interest in the Trust that will hold their former property.

    Sub-division of the property while in one of our Land Trusts is a question a bit beyond my area of knowledge; however, logically, I would think that you might find this difficult. In the past, it was suggested to one of our Clients to complete the survey and sub-division of a large parcel into smaller units and have those units each assigned tax assessor’s parcel numbers first and then place each smaller parcel into Trusts.

    Perhaps others reading this will have better info on this topic.

    The good news is that placing land into land trusts is exactly what we do.

    #26072

    Thanks Joe,

    I’ll check the other postings this weekend. I wasn’t sure if subdividing inside a trust would work or not, and it may turn out that it would be better to hold the land until it is paid off, otherwise, I would not be able to subdivide until the deed is in my name.

    Have a great weekend!!

    #26073
    Avatar of jerry carey
    jerry carey
    Member

    Be aware that with “raw land” … the Garn-St. Germain Act does NOT apply and therefore there will be a violation of the lenders Due-On-Sale clause! The lender will have to be “on board” with what your doing … otherwise they could call the notes due and sink your whole endeavor!

    Jerry Carey

    #26074

    Thanks Jerry,

    I was wondering about that. Fortunately for me the two properties I am considering right now are owned free and clear. Just trying to figure out an owner finance deal whereas I can still use a trust to buy the property, which incidently, does have a residence on it but these deals are really all about the land.

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