Posted by chris on April 21, 2000 at 10:25:47:
Mr.Bronchick-
This sounds like a good reason to have a different corporation as a beneficiary for each land trust property. If an attorney asks you in court if you have a beneficial interest in any property it seems like you could honestly says “No sir, I do not”(because you don’t, but your corporation(s) do).
-Chris
Bronchick, and other. Lender did not mention a word about my Land Trust… - Posted by Dealmkr
Posted by Dealmkr on April 20, 2000 at 19:21:44:
Bronchick and others:
I purchased a property in Feb. (it’s a keeper). After rehabbing it and getting a great tenant in there. This week,I took a file with the deed, insurance binder, photos, lease agreement, tenant’s application, and more important docs.
My lender was busy gone when I dropped it off. He called today and said everything looks good BUT the deed list a trust and the insurance binder list a LLC as the owner. I said, the LLC is the beneficiary of the Trust. Would you like for me to Quit Claim it back to the LLC. He say, “No… I just wanted to know how the principal owner was…”
WHAT?? The lender did not CARE?
Wow… Man, is my lender cool or what??
Dealmkr
Lucky you! - Posted by Bronchick
Posted by Bronchick on April 20, 2000 at 20:34:35:
Most lenders won’t lend in trust because of FNMA guidelines. I have pulled it off a few times when the processor wasn’t paying attention, but it is LUCK!
Re: Lucky you! - Posted by Ben in Ohio
Posted by Ben in Ohio on April 21, 2000 at 07:06:47:
Yesterday I went to my attorney friend and asked him to review a Land Trust I had acquired from the local REIA. I’m closing Monday and have considered putting this one in the Trust, this would be my first in a Trust as all my others are in my name. He didn’t think it was necessary. He has a lawsuit against a RE investor for specific performance on a deal gone bad. The atty plans on deposing him and/or putting him on the stand and questioning him on any beneficial interest he may have in property. SO my question is where is the advantage?? Thanks in advance.
Re: Lucky you! - Posted by William Bronchick
Posted by William Bronchick on April 21, 2000 at 09:50:12:
This atty is one of a thousand that knows about land trusts. Even so, specific performance against a trust won’t result in liability against the beneficiary, so the trustee may be able to refuse to answer the Q.
Not To Mention… - Posted by Scott (AK)
Posted by Scott (AK) on April 21, 2000 at 10:59:22:
Since benificial Interest can be assigned at any point extemely easily, I would think the attorney is fighing a losing battle.
I would think.
Scott