Anyone have experience using beneficiary interest as security? - Posted by Brian Mac

Posted by Brian Mac on April 07, 2000 at 17:36:54:

Mr. Behle

Thanks for responding. I’m trying to find out if private investors would be willing to do the same thing as you describe with your note funding except these notes would be secured by a beneficial interest, or a portion of it, in a land trust instead of a note I purchase. There would also be a UCC-1 and chattel mortgage filed where in the event of a default by the debtor(which would be me), they would not have to go through any foreclosure and would easily attain my beneficiary interest, or the portion of it, as agreed.

I know that business note buyers look for the UCC-1 and chattel mortgage so I’m wondering how abundant the funding sources might be if the real underlying assets were SFR without the judicial processing risk associated with mortgage notes.

Any further insights or ideas you might suggest would be appreciated.

Thanks again. Have a good one.

Brian Mac

Anyone have experience using beneficiary interest as security? - Posted by Brian Mac

Posted by Brian Mac on March 27, 2000 at 15:52:03:

Mr. Behle or others

Has anyone secured thier private funding investors with a beneficial interest in a trust as opposed to being secured by the mortgage? If so, what are your experiences and how do your investors like it, if it matters to them at all? Thanks.

Brian Mac

Re: Anyone have experience using beneficiary interest as security? - Posted by John Behle

Posted by John Behle on April 05, 2000 at 13:20:39:

I haven’t. My approach to investors is about the security of notes and that if they have my note as security secured by the note I purchase that they are as well or better off than owning the note or real estate itself.