What I want to do is purchase a home, put it in a land trust and name the tenant/buyer as one of the beeficiaries under the following terms:
The tenant/buyer would come in with a large down payment and would agree to an all inclusive payment for a fixed term of say 3 years. It is my understanding that since the property is in a trust, the tenant would be able to reap the tax benefits.
At the end of the specified lease term, the tenant could buy the property from me or we could sell it, etc. etc.
Am I going about this the right way?
Sounds like that PacTrust thing to me. WAY too confusing for must buyers or sellers.
Why not keep it simple and just use a regular Land Trust and sell it on a lease option or Land Contract or wrap?
Is there a free site where I can get the land trust papers for PA and NJ. I actually have my first offer accepted and now have contracts and paperwork to complete before my first sub2 goes through
Sub2 is a great method of acquiring property but it is not without risk or the need for proper education.
You put yourself and your buyers and sellers at risk by not getting the proper education BEFORE you go out signing up deals with any method of buying but most especially this method.
Now is not the time to be learning what forms you should use and how your state looks at trusts. You need this information BEFORE you start trying to pull this off.
I can’t think of any place that will give you state specific forms for trusts for free.
That being said, you should invest in a course, ANYBODY’S course, and there are many out there, that will teach you the proper way to take these deals down and then have the documents in that course reviewed by an attorney who is versed on your particular state’s laws regarding such.
Do yourself a favor and get the education you need and your sellers deserve for you to have.