Hello!
I am new to real estate and don’t really understand some terms. I am looking at a property in Austin, Texas, and I am interested in purchasing the said property as an investment. The agent said that I will take over the mortgage and will be the BENEFICIARY OF THE TRUST that the home is in. He further explained that I have total control of the property as my own. Now, what does it actually mean. Will my name be on the contract? what is Beneficiary of Trust?
Here are the agent’s answers to my questinos.
- You do not have to “qualify” to own this home. If you buy the property, you will be named as the beneficiary of the trust that the home is in. This means that you have 100% control of it, and essentially “own” it without having your name on the actual loan.
- When we name you beneficiary, you are now responsible for this home 100%. You will now be responsible for making the current payments on this property every month. Placing a renter in the property and renting it for more than the PITI payments will give you a positive monthly cash flow.
- Yes, you can rent it out as soon as the trust documents are signed…because it will be YOUR property!
- We do not manage properties, but can refer you to companies that do.
- The tax rate varies, but the above monthly payment includes all principal, interest, TAXES, and insurance.
I am just making sure before I purchase as the property cost $189,000, too pricey to make mistakes. Are all his infos correct? What do I need to further ask him to make sure I am getting a good deal. Please HELP!
Maria