Posted by Bud Branstetter on December 26, 2000 at 13:45:31:
The likelyhood of getting a loan called due in todays world is small. Maybe if interest rates spike up then lenders would be more aggressive. Not likely to happen. Yes, I believe Gatten has a better way to protect against the DOS, but that is only one reason. I have converted several properties in which were acquired with the conventional land trust into a PACtrust approach. The reason is that with the 100K+ properties you can allow the tax right-off of interest and taxes to the occupant. By giving them more benefits of ownership you can get a higher payment and more down. Using his beneficiary agreement they buy into the trust and lease from the trust. If you are still conversing with the owner you may be able to go back and modify the agreement. In many situations you sell them the idea of the trust because you can give them depreciation, cash flow or equity payable in the future. You effectively cooperate.