Are these effective? I’m trying to get out of 5 properties and will do anything to get out of paying these mortgages. I’m willing to stay on the loan if I can find a way for somebody else to take over my payments. Would you recommend this technique in my situation? My loans are all 100% LTV. I just can’t carry these properties too much longer. They are all multi-family properties.
How do I get started trying to set up a title holding land trust and what’s the best way to find someone willing to assume my mortgages?
One of the advantages of a land trust in your situation is that you can sell a property “subject to” existing financing without violating the DOSC. However, you say your properties are all “multi-family”. The land trust is exempt on properties up to four units. If your units are 5 or more, the exemption does not apply. Your case illustrates the importance of having an exit strategy BEFORE becoming involved in these transactions. Perfect example: George Bush.
Your best bet with a land trust is the fact that if you are able to locate someone willing to take over your payments, you can make that person a beneficiary of your land trust and make ownership benefits such as the property tax and mortgage interest writeoffs available to your co-beneficiary.
You may want to post your property on the discussion board at www.landtrust.net to find an investor willing to take on this deal. Good luck.
you’ve got to talk with an attorney who specializes in real estate law - land trusts (if you can find one).
I don’t think an investor will want these properties. He can’t flip them and most don’t want rentals. You can do a deed in lieu of foreclosure or renegotiate the debt with the bank. Get a lower monthly payment for the next few years until you can recover. The bank doesn’t want the property unless it can sell it quickly and that is not the case in most areas. You can also just walk away or declare bankruptcy.
I’m not this damn desperate. These properties are currently rented for enough to cover my PITI. I just don’t want them. I’ve come to the conclusion that I have no choice but to hold on for now.
Where are the properties located?
I would figure out who some of the established multi-property landlords are in the area and go pitch your deal.
If you could find someone like myself who already has established infrastructure (property mgmt with strong pipeline of tenants, contractors, etc) set-up the area then adding a few more properties is pretty easy. I’d probably do it even if they were cash neutral if I was getting them at the right price. A title holding trust would work very nicely assuming you find the right buyer.
I had a multi unit property that I wanted to unload once and a tenant purchased it from me. I carried a small second for awile but I got out ok. Since you’ve maxed out the LTV, it might be difficult for a buyer to give you top $$$. If your cap rate is very attractive why not offer a contract sale with a fair down payment. Think you could sell it to a tenant on contract?
just a thought.