BUYING SUB 2 AND SELLING ON L/O WITH LAND TRUST - Posted by DEV

Posted by Jonathan Rexford on October 21, 2003 at 14:40:13:

As Their Interest May Appear (ATIMA)

BUYING SUB 2 AND SELLING ON L/O WITH LAND TRUST - Posted by DEV

Posted by DEV on October 20, 2003 at 16:40:34:

COULD SOMEONE PLEASE EXPLAIN TO ME STEP BY STEP THE PROCESS OF BUYING SUB 2 AND SELLING ON A LEASE OPTION USING A LAND TRUST? ALSO COULD U PLEASE TELL ME ALL THE FORMS THAT ARE USED WHEN DOING A TYPICAL SUB 2/LEASE OPTION DEAL? I WOULD REALLY APPRECIATE IT IF SOMEONE WOULD PLEASE EXPLAIN THIS TOO ME. I FEEL LIKE I AM OVER THE HUMP OF FEAR AND READY TO DO SOME DEALS AND NEED TO MAKE SURE I KNOW WHAT I AM DOING :wink:

Stop Using ALL CAPS - Posted by E.Eka

Posted by E.Eka on October 21, 2003 at 08:55:52:

Stop using your caps lock. It’s poor internet etiquette. Thanks!

Go To The Archives - Posted by phil fernandez

Posted by phil fernandez on October 20, 2003 at 17:53:37:

There is a ton of information on subject to’s , lease options and land trusts. I would also look into buying a couple of courses from Bronchick to educate yourself.

MAYBE THIS WILL HELP - Posted by Jonathan Rexford

Posted by Jonathan Rexford on October 20, 2003 at 17:45:56:

Dev,

Ease up on the caps But here you go!

COULD SOMEONE PLEASE EXPLAIN TO ME STEP BY STEP THE PROCESS OF BUYING SUB 2 AND SELLING ON A LEASE OPTION USING A LAND TRUST?

  1. Sign A Contract With The Seller Subject Too The Existing Mortgages.

  2. Have The Seller Sign The Seller Property Disclosure Statement. To Determine the condition of the property.

  3. Have The Seller Sign The Seller?s Affidavit. (Same Name Affidavit) If They Use Initials For There Name.

  4. Have Seller Sign A Power Of Attorney for the property.

  5. Seller Then Signs Seller Mortgage Disclosure Statement (Due On Sale Disclosure Notice).

  6. Have Seller Sign The ?Change Of Address? Form From The Seller?s Mortgage Company Statement.

  7. Now you Create The Land Trust, Which Will Own The Property.

  8. You Sign Appointment Of Trustee. (Your Appointee)

  9. You Sign Appointment Of Successor Trustee. (Your Appointee)

  10. You and Your Trustee Signs ?Declaration Of Trust And Land Trust Agreement Naming You Or your entity As Beneficiary.

  11. Have The Seller Sign The ?Standard Warranty Ded? Before A Notary. Attach an Affadivit of Trust to Deed.

  12. Seller Sign The Authorization to Release and The ?Estoppel Letter? This Is To Be Sent To The Mortgage Companies To Verify All Balances.

  13. Before You Invest Any Money Paying A Seller Or Bringing A Loan Current, Always Get A Title Search From An Insured Title Researcher. Verify That The Sellers Are The Proper Parties And That No Undisclosed Liens Exist.

  14. Record The ?Standard Warranty Deed? Along With The ?Affidavit Of Land Trust? As Soon As Possible.

  15. Insurance, Contact your insurance company and place your trustee as insured and the seller as there interest may appear.
    

ALSO COULD U PLEASE TELL ME ALL THE FORMS THAT ARE USED WHEN DOING A TYPICAL SUB 2/LEASE OPTION DEAL?

Lease:

  1. Have Applicant Complete ?Application For Lease/Option? Get an application fee and a reservation fee if they want to hold the property while you check out their application. Get Photo Id Social Security Card. Copy of Last Pay stubs and Last years W-2’s.

  2. Give them a Reciept of what you have taken.

  3. Confirm Information On Application And Pull Credit Report.

  4. Verify Funds In Account And Deposit Reservation Money Check.

  5. Prepare And Execute ?Standard Real Estate Rental Agreement?

  6. ?Move-In/Move-Out Inspection Report?

  7. Prepare And Execute ?Real Estate Option Agreement?

  8. Follow Standard Procedures For Closing The Sale.

Well thats a little explanition. I would get to a local REIA meeting and get some more education.

buy a course - Posted by gerald(tx)

Posted by gerald(tx) on October 20, 2003 at 16:59:19:

there are several excellent ones out there that will give you in depth know how on this technique of investing.

It would be foolish to try this method without the education. I’ll send my recommendations under separate email.

Re: MAYBE THIS WILL HELP - Posted by Hank FL

Posted by Hank FL on October 20, 2003 at 20:48:58:

People have paid lots of money for books and tapes that say essentially what you did in one post.

A question on #15 (insurance) though.

I’ve never had to deal with it in any detail. Holding on to a contract longer than a few days has not appealed to me to date.

I understand that a typical way of doing may not be the best way.

You know, the whole landlord policy thing.

Your way looks a little different.

I think it would be helpfull to many here if you expounded on it a little more.

For some reason this subject makes my head hurt.

Thoughtful post - NTXT - Posted by Brent_IL

Posted by Brent_IL on October 20, 2003 at 20:14:39:

.

Re: MAYBE THIS WILL HELP - Posted by Jonathan Rexford

Posted by Jonathan Rexford on October 20, 2003 at 21:10:53:

okay I use to beat the bush trying to get the seller to convert there policy to a landlord policy…what I found out really fast it was a new policy…nothing wrong with that it was just too much of a hassel. Then the other GURU says get two policys this is probably the next best thing but I hate the idea especially here in Florida for the Hurricane crap that we have to pay.

With the land trust I do not do the assignment of interest anymore so its a little easier for me to do a deal without trying to pull a rabbit out of my hat.

Now I just get my insurance agent to play ball with me. He understands what I do. If the insurance is escrowed what we do is wait for the annivisary date and substitute with my policy. Sellers name is still named on the policy but only ATIMA…which I have the POA for. Since Title is vested in the TRUSTEE it reads Mary Smith, Trustee Then the loss payee information for the Mortgagee and the sellers info as stated above.

Now is it going to be a problem? I have had a few calls from lenders wanting to know whats going on. Since my Mangament Company is listed we go with that. We are managing the property. Thats it in a small nut shell.

Now where can I get my 1,995.00 for this post!

:slight_smile: Jonathan Rexford

Do you take IOUs ? - Posted by Hank FL

Posted by Hank FL on October 21, 2003 at 20:27:59:

Good stuff, but I’ve got questions.

>>With the land trust I do not do the assignment of interest anymore so its a little easier for me to do a deal without trying to pull a rabbit out of my hat.>Now I just get my insurance agent to play ball with me. He understands what I do. If the insurance is escrowed what we do is wait for the annivisary date and substitute with my policy. Sellers name is still named on the policy but only ATIMA…which I have the POA for. Since Title is vested in the TRUSTEE it reads Mary Smith, Trustee Then the loss payee information for the Mortgagee and the sellers info as stated above.<<

You have power of attorney from a person that doesn’t own the house ? Is that policy good up until you cahnge it on the anivirsary date ?

I was reading on another NG that this could be a problem ?

The second policy thing is easy, but expensive. The other way isn’t working out in my head for some reason.

The sticking point is that the equitable intrest has changed, so the policy naming Mrs. Smith would be no longer in effect. no?

Of course some enterprising insurance employee would have to “get it” though, for a problem to arise, no ?

Re: MAYBE THIS WILL HELP - Posted by newguy

Posted by newguy on October 21, 2003 at 12:50:08:

Jonathan,

WHAT does ATIMA stand for?

thanks

Re: MAYBE THIS WILL HELP - Posted by Douglas McDowell

Posted by Douglas McDowell on October 21, 2003 at 09:14:20:

LOL, Kudos to Jonathan!

Re: Do you take IOUs ? - Posted by Jonathan Rexford

Posted by Jonathan Rexford on October 22, 2003 at 07:06:38:

>>You have power of attorney from a person that doesn’t own the house ?>Is that policy good up until you cahnge it on the anivirsary date ?>I was reading on another NG that this could be a problem ?>The second policy thing is easy, but expensive. The other way isn’t working out in my head for some reason.>The sticking point is that the equitable intrest has changed, so the policy naming Mrs. Smith would be no longer in effect. no?>Of course some enterprising insurance employee would have to “get it” though, for a problem to arise, no ?<<

Then again…thats why he has E/O insurance…lol.