Hey guys & gals! I got a transaction idea and I'm looking for some feedback on it. Here it is:
1. Get a Sub2 deal
2. Close it in a Land Trust w/title transfer
3. Pull out equity later for reinvesting the funds
Any plausibility to this?
Hi @Rodney Dixon . Steps 1 & 2 are tricky but very do-able. The magic occurs in Step 3. How do you plan to "pull out equity?" Banks aren't going to lend to a land trust, and the Sub2 might confuse a lender into wanting the underlying mortgage borrower to get involved, which isn't likely.
I wouldn't bet on this working.