Posted by Garrett on September 20, 2007 at 09:51:13:
I would not use this structure. You are in no way protected.
Equity Holding Trust - Posted by Brett
Posted by Brett on September 17, 2007 at 24:30:47:
An investor has offered to purchase a property I have for sale using an Equity Holding Trust Transfer. It sounds similar to taking the property Subject To where I remain on the loan, but in this structure the title is placed with a trustee in a trust and I am a beneficiary and the purchaser is a co-beneficiary with me. The buyer would have 90% ownership of the trust and I would have 10%. I was told that I would still have control of the ownership of the property, but by using this structure, the buyer can gain immediate tax advantages of owning the real estate. They would have a triple net lease on the property and after a period of 2-3 years they will get financing and pay off my loan and then I get my equity out.
My question is if this is a safe structure for me to use as a seller and will I be able to claim the property if the buyer does not make his payments? Am I protected if I have a disagreement with the buyer?