Hi Everyone,
I just joined the group and it appears to be very informative, along those lines I have a question. In the past I have put sub2 deals into Land Trusts using an out of state Trustee no problem, On the wholesale deals I have just been assigning the purchase contract.
Recently though I have been told that I should be putting my wholesale deals into LandTrusts as well? Liability Issues?
If I do then do I just make myself the trustee and assign the beneficial interest to the new investor? Look forward to visiting here often. Thanks, Ryan
You’ll be making things more complicated if you were to put
your wholesale deals in a Landtrust.
Simply contract, then assign the contract or double close.
What are you trying to accomplish with the landtrust?
not worth doing a trust on a wholesale unless you’re doing a subject to deal.
yea, not sure what the real advantage would be. different states have different laws on wholesaling, so as far as liability goes, you’d have to know your local laws. i would also highly advise against wholesaling sub2, but thats just my opinion.
Thanks for the replies everyone, I have not determined what the liability protection issues are behind this yet however it was something that I had heard in a webinar from Bill Brochick and Vena as well as some others in my local REI group. I got the paperwork issues handled, its just a matter of signing it up as trustee and putting it in the trust, pretty simple but again still trying to determine what protection it affords, I will pursue it further from where I heard it as well. Thanks. Ryan
There is no protection with a land trust.