Not having any experience with land trust, here are a few of my questions.
1) Does a typical real estate contract need to be executed to initially lock in the terms of your deal….for instance, selling price, terms of the note (owner finance), etc, etc,?
2) The trustee is the only thing that is public…..does this mean that everything else is private…like the terms of the deal, the note, receipts for payments, etc.?
– mailing address for your property tax bill
3) When a down payment is put down on the property, is that reflected as a percentage of beneficial interest in the trust? For example, if the buyer puts 10% down, then you would own 10% of the beneficial interest in the trust and the seller would own 90% of the beneficial interest? If that is so, then as the note is paid down, how is that reflected in the trust?
– hurts my head – first of all most lenders will not lend to a trust.
4) What happens when the note is finally paid off? Buyer/Seller?
– competent lenders will mail you the original promissory note marked paid in full and will complete a satisfaction of mortgage to record if there was a lien on your property. it is no different than a regular loan.
5) Typically, is a new trustee appointed once the promissory note is paid off?
nope, you can change trustees anytime.
As you can tell, the structure of a real estate deal from start to finish are my main questions!
Thanks for your time. As I get to know Mike’s product better I will definitely be using the strategy in my investing future.
Mike
hope this helps you Mike,
in the real world, do not worry about creating your trust until after you have an accepted offer; otherwise you will go nuts… keep in mind, so called experts will tell you that you must have your trust agreement in place before you make an offer… and they are correct…. but in the real world as an investor, you will experience many of your offers are not accepted… this is why i recommend to do your trust AFTER you have a contract.
keep in mind, writing a contract is not proper and many realtors use this language.
this might help you
STEP 1: using a purchase and sale agreement form, you will write up an “Offer to Purchase”
STEP 2: your seller will review and if they like, they will accept your “offer to purchase” and will sign and date.
STEP 3: At that point in time, your offer becomes a “Contract.”
what do you think?
Mike Butler