Re: re: i am one-upping you! - Posted by Tim (Atlanta)
Posted by Tim (Atlanta) on April 13, 2000 at 06:46:04:
If you want the full details, you need to buy Bill Bronchick’s course on land trusts or Bill Gatten’s material on the PACTrust™.
Here is the jist of what you can do. You create a LLC. Then create a land trust, assigning beneficial interest to yourself. Then sign a warranty deed from you to the land trust. Then sign the beneficial interest of the land trust to your LLC. This will get the property out of your name, but it will NOT get the mortgage out of your name. There is no way to do that other than to refinance or requalify with the lender. There are practically no banks or mortgage companies that will lend a newly formed LLC money to buy property without the primary owner of the LLC signing for the note. The only option there is to get hard money. You will be placing the property into a land trust, not the LLC itself, so the DOS should not be triggered. You understand that you are “selling” the property to the land trust, not the LLC. The original land trust should specify you as the benenficial interest, then you assign your beneficial interest to the LLC. The assignment of beneficial interest is where the actual ownership transfer occurs.
What you propose would protect your assets to a certain extent, but it would not relieve you from responsibility for the mortgage. The mortgage will still show up on your credit report. This is where many land trust purchases fail. Many owners are concerned about retaining responsibility for the mortgage when they no longer own the property. I know it is a matter of finding the more motivated people, but that is one of the problems when trying to sell the land trust concept to sellers.