If I am doing a sandwich lease option and I am the master tenant, is there any reason why I should still complete and sign the residential lease-purchase agreement, and all of the other forms including the escrow of the Deed, and Quitclaim Deed in a Land Trust or a Corporation?
Thanks for any information that you can provide.
WIT,
Correct me if I’m not understanding, but how could you be the Master Tenant if you don’t have an agreement signed?
Yes, you should still escrow the deed as that may prevent one of the biggest risks with L/O’s.
Yes, you should still attempt to transfer title (if the seller’s willing) to either a land trust or an entity to protect the integrity of the title. It might be a difficult “pitch” when starting out, but it also prevents another risk of L/O’s, and that is having additional liens and/or judgments attach prior to your TBer gaining title.
I am new at all of this, but I was wondering if I can sign the basic documents (Lease Purchase agreement, Purchase agreement, Option agreement, etc.) with my name and then prior to any documents being recorded and placed on public record have them transferred to a Land Trust or LLC.
Thanks for any information you can provide.
WIT,
Land trusts aren’t required. Tons of folks buy and hold in their own name. It’s merely a matter of risk mitigation and is certainly not required.
I move props in and out of trusts frequently as needed for refinances, sales, etc. You can certainly buy in your own name. I’m not sure where you’re located, but in Texas, there are typically two docs recorded:
Deed
Deed of Trust
The deed would show your name for initial purchase, but you can then deed the prop into a land trust if you wanted. The only downside is there’s now a paper trail back to you, but it’s not a big deal typically.
Don’t let the privacy, asset protection, and risk mitigation details get you bogged down too much.