On July 3rd, mtnwizard wrote about using a land trust to get someone into a house to rent and then buy it. I was wondering if he could elaborate on that. Why would yougive them 50% beneficiary interest of the land trust?
Anybody’s reply would be appreciated.
mtnwizard doesn’t live here anymore…
:grim:
Keith
What happened to mtnwizard? Did he make too much money to listen to use anymore?
I believe his constant peddling (of a certain trust) got him in trouble. :-X
Suffice it to say that he was “excused” from the forums.
Keith
I don’t really buy things from people that I can’t put my hands on (which includes you guys on this forum) so his sales pitch didn’t bother me. But I just did a land trust deal last week. We got a house for 75k. We fixed it up and the value is now $115. We placed the deed into a trust with the resident beneficiary (tenant) and the non resident beneficiary (me). The resident beneficiary gave me $6500 and is to pay me $1350/month for 2 years. At the end of that 2 year period the trust will be dissolved and the resident beneficiary will be able to finance me out of the deal. It is the same deal, but executed by my local real estate attorney. There are real differences between states on how this can be done legally. You need to use a local attorney to set this up to make sure you do it right. If it is not done right in my state you can be liable to forfeiture. In a nut shell that means that you would be required to give the tenant all the money that he gave you back to him. After 24 months that would be $36000. In some states if it is not done right, you would have to give the tenant the deed for what he has already paid you ($36000). Anyway, you need to use your own attorney in your state to do these deals.