When wholesaling using Land Trust, there are are two forms that you use
1) Trust Agreement
2) Assignment of Beneficial Interest.
At closing when you are assigning the beneficial interest, is there a separate form to specify your wholesaling fee, where is this actually specified?
Also is there a step by step process to wholesale using Land trust.
@Bimal Doshi Why would you want to use a trust for wholesaling? I don't understand.
easy to assign, no need to open an LLC or double close
How does a trust make it easier to assign than putting the contract in your name? The phrase "and/or assigns" works fine for me.
Yeah, I'm a little confused too, although I guess if you put the house under contract in the name of the land trust you dont have to assign it.
Not really a good way to put a wholesale fee in that paperwork, you are basically selling the beneficial interest of the trust instead of assigning the contract, it'd be a separate agreement. Problem I see there is who you are going to use as a trustee? The trustee has to sign the contract and then close for the trust and be on title as trustee at the sale, then whoever buys it has to change the trustee later(?) Seems like more trouble than its worth.
You cannot assign an REO, using and/or assigns.
Yes if I purchase from a motivated seller, that is the route you go.
When you put the an offer, put your self as the trustee, only at closing you put the Beneficiary name and once the deal is done, collect as the fee from you buyer and resign as the trustee.
Wholesaling A REO? Really? And who would buy it? I already put in my Best Offer If Interested.
Not sure how many banks do it on REO's, but on short sales these days many banks aren't approving deals with Land Trusts as the buyers, as they know this a vehicle to flip with, therefore they feel like they aren't getting a fair price, and they make the buyer change the buyer to an individual or other entity, even though of course you can accomplish the same thing with an LLC.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!