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Help! Settlor HOT about Trustee Fee of 140/mo for 10 years!

Home Forums General EHTrust/EHT Topics and Creative Real Estate Financing Help! Settlor HOT about Trustee Fee of 140/mo for 10 years!

This topic contains 8 replies, has 0 voices, and was last updated by Avatar of kevinscott Kevin Scott 14 years, 1 month ago.

Viewing 10 posts - 1 through 10 (of 10 total)
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  • #3867
    Avatar of kevinscott
    Kevin Scott
    Member

    I’m a Realtor!

    I listed a home for $476k
    We got an RB with money! YES!

    Now, settlor is HOT that the monthly
    Trustee Fee is $140/mo. every month,
    for like, 10 years! Cuts into positive cash-flow.

    “For CHECK WRITING”?!?!???!!! They’re aghast!

    My settlors own apartment buildings,
    and think I’m blowing smoke over the
    issue that Trustee handles problems when they arise.
    “Yeah, right”. They don’t say that. But, that’s the sense.

    HELP! (I’ll search past threads)

    I know you guys with EXPERIENCE can help out here!
    Thank you very much! (Hurry).
    I’ve also e-mailed the Trustee (Equity Holding)
    I’m very interested in getting 3rd party takes.
    Seems like, FINALLY, we’ll be doing a lot more of these!

    Thank you one and all!

    #22585
    Avatar of areyes
    areyes
    Member

    why would the seller be hot about it. the RB should be making those trustee payments. or have a investor beneficiary pay it in exchange.

    #22586

    You Listed a Home that was on also on a Signed NEO ?

    Is there an NEO ?

    With or without an NEO, what was the Agreement with the Seller, for the Amount of the Payments to be Made and, if so, what Profit or ‘Cash Flow’ was Negotiated ?

    Nothing ?

    Were they just Wanting YOU to Get Everything You Could and THEY Keep It ?

    If, there is an NEO; Are You an Investor Beneficiary or is there one, that is someone else ?

    This person’s done some other Transactions.

    That doesn’t mean they control every aspect of every other type of Transaction, does it ?

    Why hasn’t he sold his property ?

    What other alternative does he have for it ?

    NARS is a System that they Work within or they are Not working in the System.

    Nowhere else to go for this.

    Tell them what your Offering and they ether Capitulate or Hit the Road Rage.

    #22587
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    What Cash Flow. It’s not cutting into anyone’s cash flow.

    #22588
    Avatar of kevinscott
    Kevin Scott
    Member

    Quick background…

    I’m a real estate agent. I was calling FOR SALE BY OWNERS
    to see if they were ready to hire an agent! When I called THIS
    owner, they asked if I knew how to do an A.I.T.D.. They WANTED
    to be THE BANK and create positive cash flow. YET, the woman told me over the phone, she didn’t want to violate the DUE ON SALE CLAUSE!

    So, I’m like… YEAH, I can do an AITD (Wrap Around)… but… if you
    REALLY wanna do somethiing that doesn’t violate DOS, then you
    need to do a LANDTRUST!

    She says “What’s that”.
    I tell her.
    I refer her to the website.
    She invites me to her home to come brief her and her husband.
    They’re IMPRESSED with the site.
    They LOVED my presentation in their home (they say I should do seminars)… and they hired me to List Their Home, and find them
    a RB. Again… they WANTED to be the bank. Not a foreclosure.
    Not desperate. Not needy. Just Greedy! I do greedy! I’m an agent!

    Well, THE TRUTH is that I had plum forgot to tell these people about
    the MONTHLY TRUSTEE FEE. Soooo, in their mind, the note was
    “x”, I got the RB to pay x + y. The “Y” was supposed to be the
    owners POSITIVE CASH FLOW. Thanks to the monthly trustee fee
    I plum forgot to tell em about… a chunk of “Y” is going to the Trustee
    Fee. That’s the story.

    Settler KNOWS RB (they are personal friends).
    Settler wanted to keep the monthly “low” with marginal positive cash flow.
    Trustee Fee takes that part. The positive is now pennies, versus,
    a couple hundred bucks.

    Just so you know…
    1. RB brought enough money to pay brokerage fee PLUS expenses
    2. RB had CASH due to equity from a previous home
    3. RB couldn’t get a home loan… and walked into this one with cash!
    4. We negotiated annual increases… to a certain plateau in year 4 or 5.
    5. Too many other interesting details to mention here!

    #22589
    Avatar of areyes
    areyes
    Member

    seems like youre not doing this as a principal but rather than a facilitator.

    also looks like a PACtrust type of deal.

    your sellers are either going to have to eat it or the RB makes the trustee payments.

    if the seller’s want to include another investor to pay the trustee fee, then something has to give, more likely some of the equity built in the seller’s property.

    make the seller realize that $140 may be a deal killer. btw how much positive cash flow is the seller getting?

    #22590

    Tell them both,”Well, folks looks like all we need to put this deal together and _____________ ______ ________ ____ and for you to get ____ and __________ ______ and _____ and you to get ____ _____ _____ and _____ and ____ ( LEAN LEAN LEAN on THEIR Benefits = They don’t have to look for a Buyer or Home, etc., etc. ) is to come up with the $70 difference ( implied = “Each” ).

    Remember, you are a world class negotiator.

    Then, everybody’s still friends and you GO DO SEMINARS ( meaning, just the ‘Mini-Sales Type’ that you did.)

    You did good and you’ve got the Product to do it with.

    Go Kevin, Alan

    #22591
    Avatar of coltrust07
    coltrust07
    Member

    Kevin,
    If you clients are questioning the trustee fee that evidently tell me they do not understand the role of the trustee in the asset protection feature of the trust and that they also provide bill collection services, and as other members have chimed in the RB pays that fee anyway so why are they complaining about it..??
    I would not even tell them or get into detail on that, that since like I said the RB pays it so who cares what it costs.
    There are ways to creatively finance this to offset the 140 dollar trustee fee anyways like creating a larger contingency fund etc..

    The trustee Equity Holding Corp initiates all eviction proceedings etc so maybe you need to have your clients look at their web site so they are aware of what all a trustee does for their clients.
    I am sure Tom Standen will address this as well when he reads the post.

    If I can help further feel free to call me at 520-980-0598 cell.

    #22592
    Avatar of areyes
    areyes
    Member

    lets say the trust term is 3 years

    just include $140 trustee fee x 36 months = $5,040 into the RB’s closing costs.

    #22593
    Avatar of coltrust07
    coltrust07
    Member

    Alvin,
    That sounds good to me just built in those costs so the settlor need not even deal with that.
    Done.

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