Family Revocable Trust

I am doing short sale flips in CA. I have been recently introduced to using Family Trust.

I wanted to get other investors advice,opinions,tips, when having the seller put the property in a trust, then flipping it to C buyer.

Pete Sanchez


I could always be wrong but without consulting council on a Saturday night I am going to take a shot at this from memory and my memory of course is not up to date with the current state and federal laws!

I believe that a Family Trust or Family Living Trust is not transferable and that the Settlor can only sell or change assets by removing them from the trust! A trustee or Co-Trustee can be named to disperse assets to beneficiaries upon the Settlors Death or Incapacity upon written instructions.

I believe a Family Trust or Family Living Trust is not transferable as it is Settlor Specific and is written for an individual or group of individuals to disperse assets upon death! A Family Trust or Family Living Trust stays permenently attached to the Settlor or Settlors, and can only be transfered to beneficiaries upon death!

This is not a stand alone trust and does not carry the same rights!


I believe you are correct. California probably has some state law regarding that as well (when don’t they have extra laws in place?). A good (free) resource to try would be a local university student. Could probably get all of your questions answered without having to pay a real estate attorney.

I have flipped many deals using a trust. It does help with C buyer seasoning issues and you can get paid the very same day. I have attorneys and escrow companies who can do this for me in place in CA. This also resolves any resale restriction put on the approval letter. THis is a beautiful system!!!

  1. How does it resolve the resale restriction?
  2. Any one using Trusts in FL to buy and sell houses? What is the methodology you guys are using. From where I am in FL the banks will negotiate with the Trust BUT, the Trust cannot buy the property from BOA again. They now require an entity with a SSN (person) or Tax ID (corporation, LLC, company, etc.)