I have found a lot easier to do a subject 2 using a land trust:
1.- I deed title to the land trust
2.- I become the trustee or anyone else but I make sure my company is the beneficiary!
3.- I find a buyer and get a contract between the trustee and buyer
4.- At closing as the beneficiary I get paid all proceeding
I’m out of the deal at closing letting the seller handle payments or a servicing co
What works better for you, land trusts or lease options?
Both are fine but they’re 2 totally separate things…one method conveys ownership, the other is essentially a glorified rental.
All things considered I’d much rather convey ownership because I can make more $$$ selling a deed than a lease option.
But I totally agree with you on the land trust strategy. Most investors either never heard of it or just don’t take the time to understand the multitude of benefits.
I too use a land trust when doing Sub2 deals. However I do it a bit different opting to stay in the deal, I take over the payments, then turn around and sell it usually on a rent-to-own basis. Reason being I can charge the upper end of the market for the area because I’d be selling in RTO, and I also take the payments over so that I can make it cashflow thus adding another cashflowing property to my portfolio. As far as lease options, its interesting. Since the recession and even before that, I’ve opted to switch from LO to land contract instead to give me that ownership position. Never know what a seller will do when you sign a LO in a recession, although you can protect yourself with paperwork I just prefer the ownership position. So in LO situations (where seller in a good financial position) when I may have in the past considered LO I to land contract instead, BUT also I like land contract over LO because it gives me more exits. I can sell an LC on assignment, cash discount, lease-to-own…more exit possibilities than with a LO.