For all of those who have experience doing sub2 deals:
I live In Tennessee and have recently discovered that Land Trusts aren’t recognized in this state. What does that mean for my hopes of getting started doing sub2’s. Is a Land Trust necessary to conceal my identity before I flip the house at FMV? Thanks.
Land trusts are NOT needed to do subject to deals, and personally, I wouldn’t recommend putting them in land trust anyway. I believe that the whole idea of land trusts going along with subject to investing came about because some course writer wanted to seem different from another course writer and chose to add “put the property in a land trust” to make their subject to method “unique.”
Using land trusts incorrectly (and in many cases, laid out the way the course writer does) can lead to potentially bad, legal troubles (ask a particular fellow NCer subto investor that been in the news lately about land trusts). Plus they add another layer of complication to the transaction, and confusion to both the seller and buyer. Closing deals, whether buying or selling, is the more simple, the easier it is to get done. Why do you think that they always say, “Cash is King?” Because everyone understands cash.
John Locke, an experienced investor, course writer, teacher and fellow poster here at reiclub, has done over 500 subject to deals, and doesn’t use land trusts. If you’re truly interested in subject to investing, I’d suggest getting your hands on anything that John has written.
hope it helps,
Roger
Roger J,
Thanks for the reply. I am more than willing to spend the $700 on “Cash’s” cd course, but do you think it breaks it all down and will actually help me to start making sub2 deals. Is it worth it? Thanks.
Fancypants,
My friend just ordered john cash’s course and I suggest you do the same since you can call john if you need help with his personal cell phone number.
You do not have to use land trusts in doing any real estate transaction it is alittle more involved but I personally think it is worth it.
You are protected in the deal as are any other investors along with the seller in the deal.
The only thing I noticed for Tennessee is that land trusts are not recongnized by the state so if you had beneficiary interest in a trust the state would not see the ownership as personalty but realty. You still however get the shielding of ownership benefits.
The investor Iam working is putting all his properties into land trusts for asset protection.
Actually in Bill Gatten course he uses the land trust marketing to acquire properties with little or no equity and still make a profit on it. Go to www.landtrust .net and read up on it and make your decision based on the facts not people who do not understand the full use of them advising you of it. It is always good to have different creative ways of doing things.
Good luck
Chris,
Yes, Ca$h breaks the process of buying properties subject to down to small, manageable, and understandable steps. However, if at any time, you are confused, don’t understand, or just want to clarify, you also get access to John Locke’s private subto website, and, as colvegas said, John himself, both here and via his personal cell phone number. I can’t think of another course writer, teacher or “guru” that does that.
Will it actually help you to start making subject to deals? That all depends on you. It will supply you with all the information and enough practical knowledge to start using subject to investing to buy properties. No book or course will ever teach you “everything you need to know” because real estate investing is an evolving business. Things change. Unexpected problems arise. What a good book/course will do is direct you on what to do if something unexpected does happen and everything I’ve ever read from John does that. Hey, worst case, call John, right?
However, John’s course will NOT help you to start making subject to deals. As I said, it only supplies you with the knowledge. The only thing/person that can make you go out and do real estate deals is you. In this business (and any owner run business), you are the motivation. No one else is going to pat you on your back and say, “good job.” No one else is going to kick you in your butt and say “get to work.” (of course, my wife would disagree here as she frequently does that to me) If you can’t motivate yourself to do it, no one else, and especially no book or course is going to do it for you.
I hope you understand and good luck in your investing career.
Oh, and I agree with colvegas that you do not have to use land trusts in any real estate transaction, and that it is always good to have different creative ways of doing things, and even that you should “read up on it” with “it” being anything that you are interested in, whether that is landtrusts or butterflies. Hey, I also believe that you should base your decision on the facts. However, since landtrust.net sells courses promoting using landtrusts, I’d take any “facts” that you get from there with a grain of salt. True facts come from neutral sources.
And colvegas, for future reference, just because someone disagrees with you about using landtrusts doesn’t necessarily mean that they “do not understand the full use” of landtrusts. I’ll be happy to discuss the ins and outs of landtrusts and their uses with you until the cows come home. Hey, I can even show you how to cut 'em in half, fry 'em in butter, and make a tasty sandwich out of them, but it still won’t change my position that a beginning investor shouldn’t be using them.
Roger
Roger,
Well I will definitely take your feedback under advisement.
I hope I did not come across the wrong way I just feel that a investor needs to do research and you are correct from neutral sources and as you said new investors probably should not use land trusts until you fully understand the concept. Sometime divulging too much information when attempting to acquire a property can be counterproductive in hindsight so the concept should be sold not told.
I agree that new investors should not probably venture into land trusts to start .
I am excited about the way you can structure your deals and actively acquiring R/E utilizing the land trust method specifically the NARS EHT system.
I agree John is the real expert on subject2 and he does to use land trusts. Like I metioned my associate is investing in his course so I will let you guys know how it is.
Once again please excuse me if I came across as too biased to using land trusts or insinuating that you had no knowledge since apparently you seem well versed on the subject. I just believe in the land trust concept it just makes a deal that much better if all parties are protected in the deal.
Fancypants: Lets compare notes on the John CASH Locke course and see how we do with it. Iam working with another investor on that and he should get the course by next week.
Thanks for the feedback Roger the open discussion is a benefit for all REI members on this site.
Good INvesting to all!!!