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This topic contains 22 replies, has 0 voices, and was last updated by Avatar of tmr28_2 tmr28_2 15 years, 7 months ago.

Viewing 9 posts - 16 through 24 (of 24 total)
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  • #6997
    Avatar of ivan
    ivan
    Member

    You show the buyer the house work with the seller as a time to show it. You control the buyer, dont let the seller control the buyer that gives them room to push you out! Just my opinion not a pro yet.

    #6998
    Avatar of goldrush
    goldrush
    Participant

    Hi Sal.
    Your posts have taught me a lot. There is one thing I am still just not getting. Using a simple trust for a flip transaction, when does the original seller get paid?

    In your point 3 above? (“The investor then takes from the seller a silent assignment of beneficiary interest”)

    Is this a partial assignment, and then the 2 benes split the proceeds at end of escrow?

    Or is the seller paid by the investor at step #3?

    If I were the seller, I would want something in return for signing over my beneficial interest to the investor. It seems that this is where the seller gets paid. Is this right?

    Thanks in advance for clearing this up for me.
    Mark (goldrush)
    accent_properties@yahoo.com

    #6999
    Avatar of blackpuma
    blackpuma
    Member
    Quote:
    If I were the seller, I would want something in return for signing over my beneficial interest to the investor.

    My ignorance speaking here, but I would assume that it would depend on the seller’s motivation. If they have two house payments, for example, just getting rid of the property would be the “something” in return for signing over their beneficial interest.

    With sellers that are in no hurry, you may need to be more creative.

    Just my two bits.

    #7000
    Avatar of anonymous
    anonymous
    Member

    To add my two cents and reply to Goldrush and James.
    In the example Sal put forth the seller did not get any of the proceeds.

    #7001
    Avatar of sserio
    sserio
    Member

    Goldrush, Bud is right.

    #7002
    Avatar of anonymous
    anonymous
    Member

    Out of curiosity, who’s tax id number would be used at the closing??

    The seller’s or the trustee’s?

    thanks

    #7003
    Avatar of sserio
    sserio
    Member

    Rich,

    At the inception of the EHT, because it contitutes a divestiture of personal property and NOT a sale of realty, income tax that would normally be due when a transfer of title and possession takes place is delayed until the termination of the trust and the trustee sells the property.

    #7004
    Avatar of jimmonty
    jimmonty
    Member

    Sal, as a follow-up question what tax related forms are issued by the trustee (or whoever)?

    #7005
    Avatar of sandpiper
    sandpiper
    Member

    In Scott Moyes transaction, he acted as Trustee and also
    took a beneficial interest in the trust.

    I imagine that when this property was flipped, Scott’s EIN would be one used- as Trustee (LLC).

Viewing 9 posts - 16 through 24 (of 24 total)

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