I was reading up on Land Trusts recently (for wholesaling purposes) and decided I would give it a shot.
The process would be as follows:
Make offer as YOUR NAME “trustee of ABC Investment Trust”- exact vesting TBD at Closing. This is done so you have time to market for a buyer once your offer is accepted. After your offer has been accepted, and you use your “14 day inspection” timeframe to locate your end buyer, you label them as beneficiary just before closing, collect your wholesale fee, and get the Trust Agreement notarized by your closing agent. After closing, you resign as trustee and have your end buyer appoint a new trustee. The name of title never changes thus side stepping the banks “non assignability” clause
I was about to make an offer until my realtor sent me the bank’s “REO Purchaser Prescreen” form. In the bottom of the form, it asks for the following information if making an offer via Trust
Full Name of Legal Entity
Full Address of Legal Entity
Entity’s Tax ID #
State of Organization
Names of All Owners of Legal Entity
Name Of Parent Company
Address of Parent Company
Name of Individual w Signature authority
Naturally this proves to be a problem with the above mentioned method of going about wholesaling w the Land Trust. If the bank wants all names of owners up front then that defeats the whole purpose of this method. Can anyone help with more information on how to go about using a Land Trust when you have to fill out these prescreen forms?? Or any other method for that matter? I thought the purpose of the land trust was to keep the beneficiaries “hidden”. Help!