Posted by chris on June 05, 1999 at 24:36:03:
Bill , if I understand the fundementals of the PACTrust correctly , the name of the game is to avoid legal headaches & extract as much $ a month as possible from the resident co-benificiary . The resco-ben pays above market rent for several things , some of these being:
-equity build up
-right of first refusal to purchase property @ market price @ termination of trust.
Now I think one would want to trade these for higher rent on every deal possible … right? . … Are there some deals where one would, let’s say, share only the appreciation and not the equity build up or visa-versa? … On your second to last sentence in your above post you mention doing a simplified version of the PACTrust? Similar to a traditional L/O ? What’s the criteria for taking those steps as opposed to your standard PACTrust? …Your PACTrust book came today in the mail , so perhaps I’ll find my answers there this weekend, but I’d still like for you to expand more on your techniques and when/when not to use certain aspects of them on what types of deals. I know that every deal is different and the only set rule that applies in real estate investing/speculating is “it depends” , but I still look foward to seeing some general guidlines that may elevate my thinking. Thanx in advance.