12 Questions to the Brains! - Posted by Jim LaVerdi

Posted by Scott on December 30, 1999 at 22:02:45:

Do you want a free seminar?

Order the Land trust course from Bill Bronchick.

Scott

12 Questions to the Brains! - Posted by Jim LaVerdi

Posted by Jim LaVerdi on December 30, 1999 at 21:25:39:

These questions are to the professional investors who know the answers.

  1. How do I have a seller set up a Land Trust? What does he have to do to have this done?
  2. Who decides what name is used to identify the Land Trust?
  3. Where does my name show up on the Land Trust? (Their name I understand will be the Beneficiary)
  4. Will I take Title when doing a Land Trust?
  5. Will I be able to legally Lease Option the property to a tenant/buyer or sell the property on a contract, or must I occupy the house?
  6. Does the Land Trust get “Recorded”
  7. What is the best way to make a seller comfortable with a Land Trust agreement?
  8. Should I suggest a Land Trust and explain how it works to a seller at the first visit to the property, or put it in the contract and explain the mechanics at a later time when they are ready to decide on the offer?
  9. Does a Land Trust 100% protect the seller against the DOS Clause? (They need to know this for certain)
  10. Is this the best way to buy and or sell when a DOS clause is in a contract?
  11. Who is a good person to name as the trustee? Seller’s choice? or My Choice?
  12. Have I missed any important questions?

Thank you one and all for your answers. You are a great help to me and an education to others who read these posts. Good luck to everyone in the New Millenium 2000!.

P.S. Anything that you might want to add to the Land Trust topic would be greatly appreciated.

Thanks Again, Jim LaVerdi (Phoenix Arizona)

Probably not the answer you want to hear but… - Posted by Jim Pasquini

Posted by Jim Pasquini on December 31, 1999 at 24:11:32:

the questions you ask take literally volumes to answer completely. For example, Bill Gatten gives an eight hour seminar that doesn’t answer all of your questions, and only touches on some others. You have kind of said “tell me everything you know about land trusts in twenty words or less”. I’ll try to give you a quick and dirty response to your points.

  1. It is a legal transaction that needs to be completed. If you don’t have resources to do it yourself, you will need to find someone familiar with them. You can use a real estate attorney and you will pay accordingly. You can buy Bronchik or Gatten’s courses and do it yourself. You can pay one of these gentleman to do it. Gatten charges $200 or less for a simple land trust. I don’t know about Bronchick.

  2. Actual naming of the trust is done by whoever creates it. The safest bet is usually using the address of the property for various reasons. The name of the trust is not really a big issue.

  3. You in all likliehood are going to assume all or a portion of their beneficial interest. You may be a sole beneficiary or a co-beneficiary.

  4. The Trust is where the title is. The trustee holds bare legal title. You hold personalty, not realty.

  5. The trust can lease the house to anyone. This is one of the fundamentals of Gatten’s PACTrust program. It doesn’t work exactly like a lease option, but similarly.

  6. You record the trust. The transfer of interest will likely be held ‘silent’.

  7. The best way for a seller to become comfortable with the concept is for you to get comfortable with the concept. I can’t offer much encouragement that you will be able to do that without some additional training outside the scope of this resource.

  8. You don’t really want to go into explaining the mechanics of a land trust as you will likely loose whoever you are “'splaining to, Lucy”. There are very simple ways to relate what you want to do. Fundamentally the land trust transaction is not that complicated. Gatten is very effective in this.

  9. The land trust does not completely protect from the DOS if you do not employ it properly.

  10. I happen to think it is a very effective method. Others will disagree.

  11. Best to name a corporation rather than a person. No succession issues and can be more easily viewed as an unbiased trustee if your seller is suspicious.

  12. Of course you have left things out, but the old saying takes over here “How do you know what you don’t know?” You might try visiting North American Realty Services site (Bill Gatten, home of the PACTrust) at http://www.cal-equity.com/ or give Bill a call directly. He is very generous with his time and can be very helpful.

Good luck.

Re: the 12 Questions of Christmas! - Posted by Potash

Posted by Potash on December 31, 1999 at 24:03:23:

on the first day of Christmas Jim LaVerdi asked the board, “How does a Seller set up a Land Trust?”~
~on the second day of Christmas JIm LaVerdi asked the board, “Who decides the name?”, and “How does a Seller set up a Land Trust?”~
~on the third day of Christmas Jim LaVerdi asked the board, “What is my role?”, “Who decides the name?”, and "How does a Seller set up a Land Trust?~
~on the forth day of Christmas Jim LaVerdi asked the board, “When is Title transfered?”, “What is my role?”, “Who decides the name?”, and “how does a Seller set up a Land Trust?”~
~Yada Yada
~

BRAIN DEAD here, but… - Posted by Jim IL

Posted by Jim IL on December 30, 1999 at 23:33:40:

Hey Jim,
Nice name by the way.
I am sure that Scott was not trying to be smart. I understand your need and want for the info requested, and I also understand Scott’s point as well.
Many of us here know some of the answers you are seeking, and we got that info by spending time, effort and money on courses to learn it. So, we do not take it well when it appears (not saying you are one of these…relax!) that someone wants that info for FREE and without effort.
Go buy a course!
It is the BEST way to get started.

Plus, you then have the info right in front of you for reference on later deals.

But, since you asked, I’ll take a stab at some of the ?'s. Just remember, I’m no attny, or expert by any means. There are undoubtedly more details than my answers will provide, and that can be found in the courses mentioned. (and if so inclined, ask an attorney for advice as well.)


1. How do I have a seller set up a Land Trust? What does he have to do to have this done?
The seller will fill out a trust agreement, and a warranty deed placing the home into a trust.
The warranty deed gets recorded.

2. Who decides what name is used to identify the Land Trust?
I usually do this, but if the seller insists, then let them. We usually use a name like, “123 ABC street Trust”. Makes it easier to identify each trust as we build our inventory of trust proerties.

3. Where does my name show up on the Land Trust? (Their name I understand will be the Beneficiary)
Your name will be on the “Assignment of beneficial interest” form. The seller assigns the interest to you.

4. Will I take Title when doing a Land Trust?
The title is moved from the seller to the land trust using the “Warranty deed to trustee”. The trust owns the home, and the beneficial interest owns the trust. The owner is once removed from the home. This means pricacy and asset protection.

5. Will I be able to legally Lease Option the property to a tenant/buyer or sell the property on a contract, or must I occupy the house?
Why would you need to occupy the home? Where did that come from? you can do with the home as you please. If a home in a land trust HAD ti be owner occupied, many of us would be in deep water.

6. Does the Land Trust get "Recorded"
Only the warranty deed to trustee gets recorded. The other material stays with you.

7. What is the best way to make a seller comfortable with a Land Trust agreement?
To anser there concerns honestly, and perform as you say you will.

8. Should I suggest a Land Trust and explain how it works to a seller at the first visit to the property, or put it in the contract and explain the mechanics at a later time when they are ready to decide on the offer?
Depends on the seller. I usually listen to the seller and there problems, then tell them I have a way to solve them and ask if they want to hear more?

**9. Does a Land Trust 100% protect the seller against the DOS Clause? (They need to know this for certain) **
NOTHING in life is 100%. That is why on ALL of my land trust “subject to” deals, we have the seller sign a disclosure form that spells out everything about the DOS and that we are going to make the payments, but NOT “Assume” the loan.

10. Is this the best way to buy and or sell when a DOS clause is in a contract?
Nope, each deal is different. I love to buythis way, and NEVER sell this way. I usually take a home “subject to” using a LAnd Trust, and sell on either a L/O or a Land Contract.

11. Who is a good person to name as the trustee? Seller’s choice? or My Choice?
I always choose the trustee, and it is wise to make it someone you TRUST. The trsust agreement will spell out exactly what the trustee is to do and how.
Essentially, the seller is only creating the trust at your direction to facilitate the transaction. since you will have control after everything is signed, then you need to be the one to set it up, and have the seller sign it all.

12. Have I missed any important questions?
Probably a ton of them, but again, I’m NO BRAIN, NO EXPERT and No LAWYER.

Now would be a good time to get a course.
And DO NOT jump on me for telling you that!
That is the BEST advice anyone can give you.
The course will pay for itself many times over in just ONE DEAL, if you buy right.
So, lighten up on those that offer that advice. They gave me the same at the beginning of my REI carreer, and it has paid off. (that was just one year ago now.)
Hope that helps,
Jim IL

I would have to agree with Scott. - Posted by Ray S(FL)

Posted by Ray S(FL) on December 30, 1999 at 23:05:01:

Jim,

Please don’t take this as I am not being helpful but you really need to buy a course. Reason being, If you have this many questions about a land trust, it is obvious, by some of you questions, that you don’t really know what a land trusts is or does for you. Your questions give me the impression that you really don’t know anything about it but, it sounds like a neat thing to try.

Forgive me if I sound harsh but, there are always posts on this board with people wanting to know how to “flip” a property or do a deal but, have not even researched the information for themselves. I call it wanting to be spoon fed. You, Jim, do not sound like one of these people.

I know that when you buy a course you will have even more questions but, at least they will be from a position of knowledge and basic understanding.

Good Luck to you
Ray S (Fl)