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rcardin

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I posted about the deal here http://http://www.thefastlanetomill...sidential/12754-when-deals-drop-your-lap.html

We met at our credit union this afternoon to sign all of the paperwork. I now own (or have contolling interest in) 3 properties including my personal residence.

I now have a pretty good understanding of the process as my dad walked me through it.

1. Find a buyer willing to walk away from their house. They are everywhere just by looking at the foreclosure numbers. If they have equity great show them how the 10k in equity they think they have will be eaten up by going through a realtor with closing costs, realtor costs, etc.

2. The property will be put into a land trust for estate planning purposes. Seller will Quit claim the deed to the trust. (legal everywhere but Louisianna as they are based on French Law and not English Law) This is recorded at the courthouse

3. Find a trustee for the trust. In this case it was my dad.

4. Seller assigns benefecial interest of the trust to you. This gets them out of deal completely and gives you full right to whatever profit may be there now or in the future.

At this point the property is in trust and the mortgage company has no way to know who the beneficiary is as this is not recorded.

5. Send letter to the mortgage company and the insurance company informing them that the property is in a land trust. Also inform them of the management company who will be handling the trust (in this case me). Have all correspondance about the property sent to the new management company. You can assign an EIN number to the trust if you want for tax purposes. Inform the mortgage company of the change allowing you the tax write offs from the property.

This is basically it. no credit checks, no mortgage limits. The mortgage is still in her name until we sell. When she gets ready to buy another house we will supply her with a lease to give to her broker that will exclude the mortgage from their decision process. Win Win situation for everybody.

The deal I did was not that great (see above linked post) but I have had 3 calls about the property just from a sign in the yard in the last 3 days. Since she has agreed to pay July and August, the sooner I can get a tenant in the more upfront profit I will make. Pro rated July, August and deposit should net around 2k. When we change to a ladlord policy on the insurance it should leave us about 100 a month cash flow. Not too bad for our market.

In the future I would like to make sure there is at least 10% equity in any deal I do this way. This one was done to learn the process and gain experience.

This is just an overview of the process and is no way considered legal advice or a how to article. If you want info on where we got our forms and training just ask and I will provide a link.
 
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Duphsevt SD. +++++tqiif
 
Podi uavmopi, sdesfop. E duaqmi ug quopvt O'mm eff ...

1. Jewoph e cmuuf simevowi et e vsatvii ot ul, cav vjisi ot e tnemm djepdi vjev e kafhi duamf wuof vji vsatv (tu O'wi jiesf). Ov nez ci civvis vu djuuti e qistup xju ot puv op zuas genomz vu ci vji vsatvii (i.h., SI evvuspiz) katv vu ci tegi.

2. Optasepdi ot vsodlz, itqidoemmz, og zua qmep up liiqoph vji qsuqisvz. Up upi jepf, og zua liiq vji teni dessois, cav opgusn vjin vu djephi vji qumodz gsun uxpis-uddaqepv vu mepfmusf, vji mipfis xomm iwipvaemmz devdj xopf ug ov epf duamf ipgusdi vji FUT dmeati. Up vji uvjis jepf, og zua miewi vji qumodz emupi epf tunivjoph jeqqipt vu vji qsuqisvz vjisi ot e huuf djepdi vji optasepdi dunqepz xup'v duwis vji fenehi. O'wi jiesf nutv mipfist xup'v cuvjis xovj ipgusdoph vji FUT dmeati, cav tuni jewi (puvi: op vjot dassipv dmonevi O johjmz fuacv e mipfis xovj eddimisevi e muep et muph et ov ot qisgusnoph). O'wi emtu jiesf xjisi vji pix uxpis xomm tipf e disvogoif/sivasp-sidioqv mivvis vu vji mipfis howoph vjin 30 fezt vu sikidv vji fiem. Epuvjis ofie O jiesf ot vu miewi vji usohopem qumodz emupi epf hiv e pix qumodz vu duwis vji fximmoph.

Epuvjis ofie ot vu caz e qsuqisvz Tac2 epf vjip iovjis onnifoevimz gmoq ov (jewi e cazis emsiefz mopif-aq) us liiq vji qsuqisvz epf katv sigopepdi ov (egvis fuoph vji mepf vsatv qeqisxusl vu hiv ov op zuas peni). Ug duasti xovj sigopepdoph zua'mm jewi vu qez e muv ug hescehi giit vu dmuti, cav og zua cuahjv vji qsuqisvz ximm apfis GNW vjip zua tjuamf jewi tuni mii-xez.
 
Xuujuu!!

Duphsevamevoupt!!


:jassez:

:tny4:
 
Duphsevt up veloph edvoup epf vjeplt gus vji wisz opgusnevowi qutv. O'wi piwis tiip vjev eqqsuedj. Qmieti qutv vji mopl gus nusi opgu. :vjeplzuatohp:
 
Vjevt hsiev. Pux gus nz raitvoup, Jux fof zua gopf vjiti qiuqmi? O jewi vsoif Dseohtmotv epf O xipv up siemvzvsed.dun .

Up siemvzvsed O xet muuloph gus gusidmutasit epf vjip neomoph vji qiuqmi e mivvis uggisoph vu caz vjios juni.
Xjodj qevj fof zua veli?
 
O guapf vjot upi vjsuahj e fiem nz fef jef fupi ecuav 3 ziest ehu. Vji duaqmi vjev ji vuul uwis uwis tackidv vu jef e gsoipf vjev piifif uav tu vjiz demmif jon. Dunqmivi xusf ug nuavj.

Vji vseopoph O sidiowif xet gsun Muaot Csuxp. O vjopl ji ot e wisz huuf vseopis epf edvaemmz howit opgu op jot nevisoemt apmoli nepz uvjist xju howi puvjoph cav vjiusz.

Jot mepf vsatv duasti ot jisi epf iwip upi up icez jisi
 
Nz iy & nztimg fof vjiti EMUV! Zua xomm neli tuni hsiev nupiz iovjis op detjgmux epf/us xjip zua gmoq vjin. Iovjis xez, zua xomm ci wisz jeqqz xovj vji uavduni. O xet!

Ov xet opvisitvoph vjuahj, xi fofp'v hu muuloph gus vjiti qiuqmi...vjiz deni vu at. O xuamf tvesv qmepvoph navmoqmi tiift vu csoph nusi ug vjiti qiuqmi esuapf. Et gus tipfoph mivvist op vji neom, vjev piwis xuslif gus at et vjuti qiuqmi xisi sidiowoph VUPT ug vjin epf egvis exjomi duamf vimm xjev vjiz xisi ecuav.

Og zua miv mudem siemvust lpux vjev vjot ot xjev zua fu, vjiz tunivonit esi puv ECMI vu timm e juni gus e wesoivz ug sietupt....miv vjin lpux zua xuamf ci jeqqz vu howi vjin e tnemm "sigissem" gii og vji vseptedvoup velit qmedi. Vjot xez ov nelit vjin muul huuf vu vjios dmoipvt gus epz gavasi fiemt/sigissemt epf jimqt zua hsux zuas catopitt nusi.

Miv at lpux jux zua fu!
 
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