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sold but how to start first NEHTrust?

Home Forums General EHTrust/EHT Topics and Creative Real Estate Financing sold but how to start first NEHTrust?

This topic contains 5 replies, has 0 voices, and was last updated by Avatar of mike-ut mike-ut 7 years, 10 months ago.

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  • #6810
    Avatar of mike-ut
    mike-ut
    Member

    I’m here in Salt Lake area and first heard about Gatten and the NEHTrust at a 2005 WAREIA event with Scott Moyes. Since then I have read a ton of NARS material and on the subject of CRE in general. I am sold on the WHY but have zero interest in filling out paperwork. I am going to be renting my personal residence in March and plan to acquire subsequent investment residential property throughout this year (2012).

    Isn’t it enough for me to just say I have a property and I want it in a trust, and be willing to explain that to my property manager and tenant, and then just pay Scott or someone as a facilitator and/or an attorney to handle the legal paperwork for me to get it filed correctly? And what is the cost I should expect to pay per property? Also, how long does it take lately?

    My setup is going to be: I own property, I put into trust as Settlor + Investor Beneficiary, my tenant is Resident Beneficiary. I pitch it as a lease option. I’ll switch insurance policy from homeowner to renter insurance. Their deposit will be 2 months rent. Just enough to cover the insurance deductible should anything go wrong. I’ll be paying a property manager 10% of rents to manage to place the ad, show the property, do quarterly inspections, and take the calls, etc. Thinking it should work.

    Also, does NARS have any basic (i.e., 3-fold brochure) promotional material to explain the trust to prospective tenants (resident beneficiaries), or should I make it myself?

    #33869

    Mike, you have an excellent memory and understand the process well. I also got your facebook message and will be glad to work with you. There are several pieces of literature, as well as various articles etc., available. I’ll email you with some attachments over the weekend. Fair Enough?

    #33870
    Avatar of mtnwizard
    mtnwizard
    Participant

    First, don’t pitch it as a lease option. IT IS NOT. A lease option has a sale price attached. This is a Lease to Own at fair market value at a future date. The last thing you want is for some judge in the future to rule that your transaction was actually a disguised sale. Then you have to deal with the IRS.

    Don’t drop homeowner’s insurance. You have to keep it. Your renter must take out renters insurance. Two entirely different animals.

    Additionally, I detect a strong case of laziness. You appear to be used to having others do the dirty work and you simply want to reap the benefits. How hard is it to enter dates, addresses, and other information online? Being detail oriented is often the fine line between success and failure. The more you know and understand about your transaction, the better your chances to succeed. I would recommend working with Scott but developing a strong attitude change at the same time so that you can appreciate your success as something that YOU caused, not others. Good luck.

    #33868

    First of all Gary, Mike is actually a good friend of mine, member of our local REIA and very well acquainted with NARS and the EHTrust. In fact, I’m willing to bet that he knows as much about it as 99% of most NARS Members.

    @mtnwizard wrote:

    First, don’t pitch it as a lease option. IT IS NOT. A lease option has a sale price attached. This is a Lease to Own at fair market value at a future date. The last thing you want is for some judge in the future to rule that your transaction was actually a disguised sale. Then you have to deal with the IRS.

    The EHTrust IS NOT our ALTERNATIVE to Lease Options or any other form of Seller Assisted Type Financing Arrangement, IT IS THE WAY WE DO THEM.

    @mtnwizard wrote:

    Don’t drop homeowner’s insurance. You have to keep it. Your renter must take out renters insurance. Two entirely different animals.

    NOT EXACTLY CORRECT. The “Homeowner’s” Hazard Policy HAS TO BE CHANGED to a “Non-Owner Occupied” or “Landlord” Hazard Policy. If the current policy is kept in place and there is a claim, it will be rejected and all the premiums will be for not. Changing to a Landlord Policy may change the premium and in some case be more. So before you go quoting a monthly payment, you need to contact your agent and ask IF you can convert it to a Landlord Policy. Some carriers will not, others will charge much more, most will charge a little less since the policy only covers the structure only and not the contents.

    IF, the new resident wants their personal property (contents) covered, they will need to carry their own “Renters Policy”. But, It is not required.

    @mtnwizard wrote:

    Additionally, I detect a strong case of laziness. You appear to be used to having others do the dirty work and you simply want to reap the benefits.

    REALLY GARY? Not only is this comment VERY RUDE, it is not true and I have no idea how you “detected” a strong case of laziness. Again, Mike is a personal friend and is one of the hardest workers I’ve ever met. He is an Entrepreneur and Business Owner with skills you can only dream about. Mike also understands that even if he thinks he knows a lot about a subject, he’s not stupid enough to believe he knows it all and therefore… asks lots of questions. This is the mark of a successful person, which he is.

    Gary, you know that I respect you very much but why do you feel the need to verbally attack each and every persons that posts on this board with questions? If there is one thing that Bill has tried to teach me over the last 13 years is to Talk To People, Not Down To Them, unless it’s Cork of course. Just kidding Corkster. You know I look up to you, mostly cause you’re taller.

    #33872
    Avatar of mtnwizard
    mtnwizard
    Participant

    When somebody says: Isn’t it enough for me to just say I have a property and I want it in a trust, and be willing to explain that to my property manager and tenant, and then just pay Scott or someone as a facilitator and/or an attorney to handle the legal paperwork for me to get it filed correctly? And what is the cost I should expect to pay per property? Also, how long does it take lately?
    it is telling me that this person doesn’t want to be bothered with the minute details that can make the difference between success and failure. What else is he saying? He wants others to do the dirty work and he wants to benefit from their efforts. If you have another take on this, please explain.

    As to the Lease Option aspect, we all know that we don’t do lease options. The EHT simply accomplishes the goals of a lease option without the legal obstacles such as the “disguised sale” which you yourself so eloquently described in your article about lease options. My advice to him was correct.

    Finally, my intent was not to be rude but to point out to this person how he is perceived by others who aren’t his friend and who don’t know him.

    #33873
    Avatar of corkhorner
    corkhorner
    Participant

    At one time I thought it was important to know everything…..but since I forgot most of it, ‘who cares’.
    @ Scott & Whizzo—this thread beginning to look like what happens when people ‘mellow and chill’.

    Scott, a sign of being healthy is to not shrink. Still maintaining 76″, 230# lean mean fightin’ ‘cheen . Not bad for only 25 years to big double five-O.

    When I hit 10 squared I’m gonna hold a Hooters Reminiscent Party and invite the waitresses to tickle the wizard’s beard for his annual thrill.

    In the meantime, when I finger out the Portfolio Loan program for metro phx I can really start livin—-again.

    c h
    Somewhere In The Sonora

    #33871
    Avatar of peter@amakya
    peter@amakya
    Member

    Goodness I’m away for awhile and you guys go off at a tangent! :o

    A little from South Texas.

    1. The Trusts is not a Lease to Own, Lease Option, WRAP or any of these things although it will mimic them to a degree. The truth is it is an offer to purchase at a future price or put more succinctly, an offer to purchase with a right of first refusal.

    2. One does not want to appoint an agent to collect or manage the property as this will form a ‘disguised’ homeowners association. The Trustee should do the collections for NO FEE.

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