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February 11, 2009 at 8:20 pm #5461
I am a new graduate and looking to start ASAP. I would like to know if there are resources that can explain in more detail the “Tax Lease” or Quick Condo” “short Sale”, etc.
Any direction would be helpful.
David BeckFebruary 11, 2009 at 8:36 pm #28560
Tax lease is just having an RB lease from the trust for a few years and take the tax benefits without having the obligation to purchase or resell. They will reassign their beneficial interest back to the investor when they decide to move on. Investor would be responsible to locate a replacement RB and either do a tax lease or a regular long term EHT. This would be ideal for a or a business owner or a parent paying for college housing.
What’s a quick condo short sale?February 11, 2009 at 11:03 pm #28561
I am a new graduate and looking to start ASAP. I would like to know if there are resources that can explain in more detail the “Tax Lease” or Quick Condo” “short Sale”, etc. David Beck
I believe Bill Gatten and Maurice Kempner are you best source of info on the “Quick Condo”. This is much like a fractional ownership type arrangement. Each unit/occupant would be a Beneficiary of the trust and share in their respective interest deductions etc. This would essentially eliminate the need for a full condo conversion and all the red tape that comes with it.
As far as Short Sales, as some have pointed out, these are getting harder using the any trust, but not impossible. Our office is not having any problem with Title Companies, its the lenders who have tightened up on seasoning that’s the issue. However, if your buyer uses a non-conforming lender with little, if any, seasoning requirements, Short Sales with Double Closes work fine.February 13, 2009 at 12:17 am #28562
Thank you for your reply on the tax lease and quick condo programs. I appreciate it.February 13, 2009 at 4:18 pm #28563
Scott et al
with the new bailout funding and talk about a ‘toxic loan bank’ run by the Feds, all rules can change each day.
It has been my experience
since 1961 that it’s the essence of transaction engineering that creates win-win strategies.
So too with lenders. Again, relationships are important.
c hFebruary 17, 2009 at 2:12 am #28564
Our office is not having any problem with Title Companies, it’s the lenders who have tightened up on seasoning that’s the issue. However, if your buyer uses a non-conforming lender with little, if any, seasoning requirements, Short Sales with Double Closes work fine.
Don’t need a trust for a double close. I’ve located two such lenders. How many have you identified?
I could’ve sworn the NARS trust was advertised as able to resolve these issues. I guess I was mistaken.
RB: Wheee–I’ve been approved for a loan at Bank of America!
NARSian: Uh, they won’t give you a loan because of seller title seasoning.
RB: Buh, buh, buh, but B of A has the best rates.
NARSian: Well, if you buy this house, you’ll have to use this lender over here. [They charge 1.5% higher in rate.]
RB: I think I’ll find another house to buy. There are so many to choose from, ya know.February 17, 2009 at 10:18 pm #28565
Dare Soute California Chiquita,
My philosophy has always been that “If you don’t need what someone else can offer, then you already have it or something better.”
If you don’t need ways around seasoning and double escrows, then you are in good shape…and don’t need to fix nuthin’ that ain’t broke.”
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