All Forum Posts by: Mikel Graham

Hello everyone,

I've been scouring this forum since getting interested in wholesaling. I decided early on that this was something that I was going to do. Consequently, with each new step I've learned, I just went out and did it. I have a number of REOs that I'll be bidding on, and I have a list of cash buyers at my disposal. There is just one thing holding me back at this point...

How exactly to handle the Land Trust. I know there are different methods in turning over a contract/property to a buyer. For now, I have elected to go the Land Trust route. At this point in time, I'm not interested in the other methods as the Land Trust method is what I've devoted my time to. I'm looking to place my first bids next week and thus do not want to have to educate myself on a completely new approach.

So in a broad sense, I need to know step by step how to use the land trust in fine minute detail.

From what I've read and heard about, it is my understanding that you create an EMPTY trust first. Following that, when placing a bid on a property, you attach an addendum indicating that the property will be put into that EMPTY trust. Beyond this, I'm pretty clear on what to do.

My hang up is, creating the EMPTY trust. When I filled out the paperwork for the trust with NO PROPERTY in it and tried to get it notarized (so that it would have validity), I was told that it couldn't be notarized since it was incomplete.

So, since I can't get the empty trust notarized, I'm kind of stuck.

How do I handle this?

As soon as I'm clear on this, I'll be able to make my next move in completing my first deal, so expediency is appreciated! :-)

If anyone has any experience filling out an Illinois Land Trust agreement form, please let me know, as I'm in need of some help.

Thanks Bill. I understand and that would be ideal. Still, should my buyer not be familiar with buying a trust, I want to be knowledgeable enough to able to provide that information for them.

I just want to make sure I know the ins and outs and what I'm doing. This is for myself and to instill confidence with my buyers.

This is great information as I plan on using this model for my first deal. I just have a few (but basic questions)...

1. Who is the trustee? Who is the beneficiary? Who is the grantor?

2. When "selling the trust", what exactly is being sold? Are you simply adding the buyer's name to the trust? If so, are they added as a trustee, beneficiary, etc.?

3. Once the entire proceeding is complete (closed on the trust and the property), how do you DISSOLVE the trust? (in case the buyer doesn't want to keep the property in it)

4. I'm reading the Illinois land trust form and at the end, it asks for "insert title of signing authority"... what exactly does this mean?

5. Can this form be filled out as an individual entity or do I need a DBA?

I know this is resurrecting an old thread, but I have been searching for hours for clear direction on these questions.

Excellent Bill!

Just a quick question, does the 20% profit limit still apply?

I'm looking to do my first wholesale deal and planning on using a Land Trust to seal the deal. I THINK I'm pretty clear on how to create the trust.

My question is though, once the trust is created and the property is in the trust, how do I dissolve it and get it out?

I know this has been covered a bit in the past (and yes I'm going through the threads). But I do have one question that I'm not 100% clear on.

Apparently, there is a "carry with the land" statement in the 90-day/20% restriction.

Just to be 100% clear... does this mean that, even if I pay for the property in full, 100% cash, I'm still not allowed to sell within 90 days and more than 20% profit?

Just seems strange that such a restriction would continue to apply once the property is fully paid for.

I ask because I'm staring at a great wholesale deal (would be my first). The price is $79/sq. ft. and similar houses in the area (like within a few blocks) are going for $130-150/sq. ft. I believe I can wholesale this but my only hesitation is that it is a Fannie Mae property.

I'm aware of the 'trust' workaround and will most likely use that method and pursue this.

Any and all help would be appreciated.

M

Thanks for the reply Greg. I appreciate your advice however, I know that this can be done without the license or full access to MLS. Granted, I also know that the way I'm doing it now is going to take that much more effort and diligence. Now, don't get me wrong, I'm not saying that I'm not open to other paths, however, I wish to close my first deal within the next 4 weeks (or at least have 1 property under contract). It's simply not practical or possible to obtain a license and still meet this goal. Ambitious? Yes, but I believe and know it's possible.

I will definitely look into the courses and books alongside my pursuit. In the meantime, I'm going to continue moving forward and gaining as much real-world experience as possible.

Thanks again!

Well I'm actually a budding wholesaler, consequently, I'm not limiting myself to any particular area. I will have a look at the properties tomorrow (just got the list today).

Some advice on how to narrow my selection would be appreciated.

Ok, so I've been struggling a bit here. I recently received a list of REOs in my area. I've been trying to find similar properties that have sold recently and I am unable to find a single comp for the 30 listings I have access to.

Ultimately, I will need to request comps from my realtor and perhaps a title company. However, I have a much more fundamental question...

How do I decide which of these properties I should get comps on? I really don't want to waste anybody's time by asking for comps on everything. How do I narrow down my search?