Re: Not to bet a dead cow, but… - Posted by Bill Gatten
Posted by Bill Gatten on April 13, 2000 at 21:20:58:
If you were to take a property into a “3rd party trustee, co-beneficiary title-holding [land] trust,” then assign a portion of your own beneficiary interest in that trust to someone who would live in the property and handle all the maintenance and management costs, you’d have one of the best holding vehicle ever devised. And…because the “tenant” sees him/herself as the “owner” with all the rights, incidents, privileges and benefits of an owner (including tax write-off), they’d pay you perhaps as much as 120% or 150% of normal rent and eliminate all of your negative CF, vacancies, maintenance and repair costs, etc.
When we do these, we get: 1) created equity at inception (buy for “X” and create a value of “Y” for the incoming co-beneficiary, 2) cash up-front (the co-bene pays all closing costs, including a few thousand to you, 3) a positive cash flow (whatever the payments are, you add another hundy or two for you); 4) a share in the equity build up front; 5) principal reduction 6) a share in (or all of) the appreciation; 7) all of the passive tax write-off; and 8) all your money in tact to continue acquiring more real estate while you pack your portfolio.
Just a thought…