I’ve read a good bit the last few days about the use of land-trusts. If you intend to take control of a property subject to and the lease/option it out what are some reasons you would Not want to use a land-trust?
Why does everybody not use them on every lease option deal if they are so useful?
hassle
cost
lack of knowledge
thanks!
BUT, w/ knowledge comes reduced hasle and ease of busienss and invariably reduced cost…right? For example bill gettens company NARS can do all of this for a nominal fee right? That being said, would it stand to reason that once you get the jist of how they work and how to structure a deal its childs play…
kinda like when I got in the mtg. business…I didnt know jack about loan programs and how to structure deals…now 6 years later, if it’s a subprime loan I can get 'er done, if it’s doable.
you got it.
While you may understand it completely, you still have to explain it to the sellers and convince them that it is OK and legal and also convince anyone who tells the sellers something to the contrary.
If you are in NC, you might also have to convince the State Attorney General that you are not defrauding the lender by concealing the transfer.
Since my name was used here (albeit mispelled a bit), may I jump in?
The reason more folks don’t use land trusts is because they simply don’t know of the versatility and what the benefits, features and advantages are. If they did, they’d never allow “hassle” to get in their way.
When one’s ‘Need-To’ catches up with their ‘Want-To’…the rest comes naturally: most people don’t get to the ‘Need-To’ part until their shorts have been sued off, or until they’ve lost a property or two two to the miscreants out there who are looking to dupe anyone who truts them.
Another point mentioned: Placing a property into a land trust (or any inter vivos trust structure) need never be concealed from a lender (though it’s a good idea not to mention it too freely, as some $12.00 per hour whitge shirt will try to reinvent the wheel and swear the DOSC is being violated in hopes of recvie a brownie or two from the boss).
We’ve done dozens of land trust transactions in NY and have never had a problem with the AG–only the recorder’s office. I must say, NY is the wierdest and toughest state in the country to get ANYTHING done. Eviction takes about a hundred years; you can’t file a deed without four pounds of other paperwork attached to it; the recorder office clerks all dropped out of school in the third-grade and took a class in Smart-Mouth; and everyone who lives downtown wants to fight all the time. So when in NY you must resign yourself to either be smart-mouthed, fought with or just fu-gehd abaat it.
Bill GATTEN