Land Trust vs. Option Contract, Which One to Choose?

Question

For the Short Sale Double Closing
A to B; B to C

Pros:
If you choose the Land Trust, you will have the added advantage of seasoning to allow the end buyer to possibly qualify for FHA financing (The New Sub-Prime).

If you choose the Option Contract, you have the flexibility to unravel the transaction without a mess if you are unsuccessful in flipping.

More Pros and Cons to follow

Robert MacKinnon · Answer

Are you just saying that to set me up? If so I accept,  WE DO! Bring your land trusts!!!

Ryan Moore · Answer

Land trust are good for selling to FHA end buyer. The problem these days is finding a title company who will do these transactions anymore. (anyone who knows of a title company closing deals using land trust please let us know)
            
            Option contract is the way to go when looking to double close to property.

Robert MacKinnon · Answer

More Pros:

With the Option Contract:

1) More flexibility if property cannot be re-sold for a high enough price.  You can just surrender option since there is no recorded change in title.

2) Heightened disclosure to end-buyer lender in title commitment which denotes speculative nature of transaction.

3) Available to use in any state.

With the Land Contract:

1) Name of seller on Real Estate contract matches Title Commitment.

2) Name of owner on Real Estate contract matches name on Appraisal.

Account Closed · Answer

It depends on what you are doing.

You obviously have something in mind but since I am not clairvoyant I have no way of knowing what you are going to do with whichever one you ultimately choose.

Robert MacKinnon · Answer

Assume Short Sale.  I want to make a spead.  What is the best way to get that spead?